Due to an accident, you will be compensated with $1000 every year for three years and $2000 every year thereafter for another three years. How much would you be willing to take today in lieu of those future cash flows, assuming that you could earn an 8% interest on the money if you had it today.
a. $13,868.64 b. $6,668.66 c. $5,671.53 d. $9,000.00 e. None of the above