You are expecting to receive cash flows of $200 annually forever, starting in one year. The discount rate is 9.40% per year for the first 10 years, after that the discount rate drops to 4.40% forever. How much would you be willing to pay for this investment today?

a.

$3,205

b.

$3,112

c.

$2,953

d.

$4,545

e.

$2,128