Walt is evaluating an investment that will provide the following returns at the end of each of the

following years: year 1, $12,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year

6, $0; and year 7, $12,500. Walt believes that he should earn an annual rate of 8 percent on this

investment. How much should he pay for this investment?