In preparing a capital budget, a real estate manager forecasts that $$250,000$ will be needed for major repairs in four years. How can he or she calculate what to invest?

select one:

a$.$Calculate the present value of the improvement using compound interest rates.

b$.$Calculate the present value of the improvement using discount rates.

c$.$ Calculate the future value of the improvement using discount rates.

d$.$ Amortize $$250,000$ over four years.