Scenario: 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 B is ________.
A) ‒$1,536.34
B) ‒$2,322.12
C) $157.46
D) $1,800.79
Correct Answer:
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