You have received a settlement offer from a restaurant for your medical expenses due to food poisoning. The restaurant will pay you $160,000in one lump sum two years from now. You can earn 6% on your investments. The present value of $1 for 2 periods at 6%is .890. The present value of an ordinary annuity of $1 for 2 periods at 6%is 1.833.

The present value of the settlement offer is closest to:

A.

$320,000

B.

$160,000

C.

$142,400

D.

$ 293,280