Tom Has Two Investment Options

Multiple Choice

Tom has two investment options. He can either invest $3,000 in a friendʹs project or he can deposit the same amount in a bank that offers him an annual rate of interest of 6 percent. If he invests in his friendʹs project, he will receive $3,400 after 5 years.
-Refer to the scenario above. What is the net present value of his friend's project?

A) -$459.32
B) -$666.21
C) $534.66
D) $616.21