An investment, which is worth $55,000.00 and has an expected return of 14.00 percent, is expected to pay fixed annual cash flows for a given amount of time. The first annual cash flow is expected in 1 year from today and the last annual cash flow is expected in 6 years from today. What is the present value of the annual cash flow that is expected in 3 years from today?
$14,143.66 (plus or minus 10 dollars)
$9,546.57 (plus or minus 10 dollars)
$11,250.51 (plus or minus 10 dollars)
$12,406.72 (plus or minus 10 dollars)
none of the answers are within 10 dollars of the correct answer