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n investment costs $4,500 today and will result in a cash payment of $9,000 in seven years. Which statement about this investment is true, assuming

n investment costs $4,500 today and will result in a cash payment of $9,000 in seven years. Which statement about this investment is true, assuming an interest rate of 8%?

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OptionA

This investment has a present value (PV) of $751.41 and a net present value (NPV) of $5,251.41.

OptionB

This investment has a PV of $5,251.41 and a NPV of $751.41.

OptionC

The PV and NPV of this investment are both $751.41.

OptionD

The PV and NPV of this investment are both $5,251.41.

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