[单选题]

Williams Warehousing currently has a warehouse lease that calls for annual payments of $120,000 over the next 5 years. The warehouse owner, who needs cash, is offering Williams a deal wherein Williams will pay $200,000 during the current year and then pay only $80,000 over the remaining 4 years. (Assume that all lease payments are made at the beginning of the year.) Should Williams Warehousing accept the offer if its required rate of return is 9 percent, and why?

A.Yes,there is a savings of $45,494 in present value terms.

B.Yes,there is a savings of $80,000 over the five years.

C.Yes,there is a savings of $49,588 in present value terms.

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