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A firm has an opportunity to invest $110,000 today that will yield $126,500 in one year. If interest rates are 4% , what is the

A firm has an opportunity to invest

$110,000

today that will yield

$126,500

in one year. If interest rates are

4%

, what is the net present value (NPV) of this investment?\ A.

$16,500

\ B.

$11,635

\ C.

$12,798

\ D.

$18,615
image text in transcribed
A firm has an opportunity to invest $110,000 today that will yield $126,500 in one year. If interest rates are 4%, what is the net present value (NPV) of this investment? A. $16,500 B. $11,635 C. $12,798 D. $18,615

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