You are considering purchasing an apartment; you will be the landlord and will rent the apartment to tenants. You determine that you will receive net yearly cash flows of $$10,000$ from rental revenue from the apartment. To make the analysis easier, assume that the cash flows are generated at the end of each year. These cash flows will continue for twenty years, at which time you estimate that you can sell the apartment for $$250,000.$ How much should you pay for the building NOW, assuming that you want to earn a rate of return of $10$ percent?

$$122,296\mathrm{.}54$

$$37,160\mathrm{.}91$

$$66,889\mathrm{.}63$

$$254,624\mathrm{.}98$