Computing the present value of this investment
Transit Insurance Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment? (Round to the nearest dollar.)
a) $101,766
b) $124,868
c) $251,154
d) $186,250