You are expecting to receive cash flows of $120 annually forever, starting in one year. The discount rate is 9.20% per year for the first 8 years, after that the discount rate drops to 5.30% forever. How much would you be willing to pay for this investment today?

a.

$1,779

b.

$1,823

c.

$2,264

d.

$1,304

e.

$1,685