A Security Firm Is Offered $80,000 in One Year for Providing

Multiple Choice

A security firm is offered $80,000 in one year for providing CCTV coverage of a property.The cost of providing this coverage to the security firm is $74,000,payable now,and the interest rate is 8.5%.Should the firm take the contract?

A) Yes,since net present value (NPV) is positive.
B) It does not matter whether the contract is taken or not,since NPV = 0.
C) Yes,since net present value (NPV) is negative.
D) No,since net present value (NPV) is negative.
E) No,since net present value (NPV) is positive.