Tom's Donuts Can Invest in a New Espresso Machine That

Multiple Choice

Tom's Donuts can invest in a new espresso machine that costs $300 and will yield expected profits of $200 each year for two years. What is the present discounted value of the expected profits from this investment if the interest rate is 5%?

A) $185.93
B) $276.64
C) $371.89
D) $380.96