Suppose That the Cost of a New Treatment for HIV

Suppose that the cost of a new treatment for HIV is $20,000 per year, and that it increases the life expectancy by 5 years. If the discount rate is 4 percent, what is the present value of the costs of treatment to a 40-year-old male who has a life expectancy of 45 years without treatment.

A) $96,153.85
B) $85,155.50
C) $73,181.47
D) $100,000