You have an opportunity to purchase the Waiting Line Cafe, a busy shop near your office. The owner is asking $80,000. After satisfying yourself as to the accuracy of the firm's past financial statements, you note that it generated $12,000 per year in net cash flow. You believe you could operate the business for 4 years and sell it for $50,000. What is the maximum amount you would be willing to pay for the business if you wish to earn at least a 10% return on your investment?

a.
$54,641

b.
$72,189

c.
$80,000

d.
$38,034