Assume Smith Company has the opportunity to invested $100,000 in a business opportunity that would result in the Smith Company receiving $100,000 a year for the next three years. Assuming that Smith Companys cost of capital is 10%, what amount is closest to the net present value of this business opportunity?

Select one:

a. $400,000

b. $300,000

c. $250,000

d. $150,000

e. $100,000

f. None of the answers are within $10,000 of the correct response