Determine the Net Present Value (NPV) of an Investment Decision

Multiple Choice

Determine the net present value (NPV) of an investment decision to purchase a property for $90,000 that will generate annual cash flows of $10,000 per year for eight years and sell for $80,000 at the end of the eight year holding period, if the appropriate discount rate is 10%? (Note: assume payments are made at end of year)

A) -$2,475
B) - $609
C) + $609
D) +$2,475