Which of the following comes closest to the net present value (NPV) of a project whose initial investment is $5 and which produces two cash flows: the first at the end of year 2 of $3 and the second at the end of year 4 of $7? The required rate of return is 13%?

Select one:

a. $2.05

b. $2.26

c. $1.84

d. $1.64

e. $0