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Scenario: an Investor Is Considering Three Different Investment Options

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Scenario: An investor is considering three different investment options. Investing in Option A pays him $4,000 after 6 years, investing in Option B pays him $7,600 after 7 years, and investing in Option C pays him $9,000 after 8 years. If he deposits the amount with a bank, he would receive an annual interest rate of 9 percent.
-Refer to the scenario above.If the investor plans to invest a sum of $4,000,the net present value of Option B is ________.


Definitions:

Scientific Method

A systematic process used for research and experimentation that involves observation, hypothesis formulation, experimentation, and conclusion to validate or invalidate a theory.

Formulate Hypothesis

The process of developing a testable statement or prediction based on observations and existing knowledge.

Reflect Opinion

To show, represent, or express the views, attitudes, or sentiments of individuals or groups.

Inventory Turnover

A ratio indicating how often a company sells and replaces its stock of goods during a particular period, a measure of efficiency in managing inventory.

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