Calculating the Present Value of annual payments over next 4 years with interest rate @ 3.6%:
| Year | Cash Flows ($) | PV Factor @3.60% | Present Value ($) |
| 1 | 28,000.00 | 0.9653 | 27,027.03 |
| 2 | 32,000.00 | 0.9317 | 29,814.70 |
| 3 | 66,000.00 | 0.8993 | 59,356.01 |
| 4 | 99,000.00 | 0.8681 | 85,940.16 |
| PV | 202,137.90 |
So, The present value of annual payments is $ 202,137.90
Hence, Option C
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