Based on the cashflows to be achieved, the total present value that Price Mart should be expecting is $59,172
The total present value will be the sum of the present values of all the cash flows.
Year Cashflow
1 $10,900
2 $16,900
3 $16,900
4 $19,900
5 $19,900
Present value is:
[tex]= \frac{10,900}{1 + 0.12} + \frac{16,900}{1 + 0.12^{2} } + \frac{16,900}{1 + 0.12^{3} } + \frac{19,900}{1 + 0.12^{4} } + \frac{19,900}{1 + 0.12^{5} }\\[/tex]
= $59,172
In conclusion, the total present value is $59,172
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