Jensen, Inc., is analyzing a possible purchase of Milo Co. and believes that Milo Co. can generate cash flows of $5,500, $10,500, and $16,700 over the next three years, respectively. After that time, they feel the business will be worthless. Jensen has determined that a rate of return of 20 percent is applicable to this potential purchase. How much is Jensen willing to pay today to buy Milo Co.?
Group of answer choices
$22,675.23
$21143.81
$22,084.21
$20,149.85
$21,539.35