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Find present value of rent payments

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Rick's Repairs, Inc. is considering renting a new shop. The landlord has offered a number of alternatives for paying the rent. The present value factors at the company's rate of return are as follows:
Period
Present Value Factor
1
0.90909
2
0.82645
3
0.75131

The landlord offered a 2-year lease with $20,000 to be paid for rent at the end of each year.

The present value of rent payments over the life of the lease is:
Select one:
A. $20,000
B. $33,208
C. $34,711
D. $40,000

Reference no: EM132719957

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