Multiple Choice
An investor is considering three different investment options. Investing in Option A pays him $4,000 after 6 years, investing in Option B pays him $7,600 after 7 years, and investing in Option C pays him $9,000 after 8 years. If he deposits the amount with a bank, he would receive an annual interest rate of 9 percent.
-Refer to the scenario above. If the investor plans to invest a sum of $4,000, the net present value of Option A is ________.
A) -$1,535.89
B) -$1,614.93
C) $898.46
D) $1,535.89
Correct Answer:
Verified
Correct Answer:
Verified
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