What the total present value of the payments

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Problem 1: Tap's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is:

A) $11,468.

B) $14,000.

C) $12,100.

D) $10,699.

Reference no: EM132842521

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