If the discount rate is 10%, the net present value of the investment is closest to:

A) $370,000
B) $457,479
C) $234,000
D) $87,479

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal and capital budgeting.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period.

Investment

The allocation of resources, such as time, money, or effort, in the expectation of future returns, typically involving some degree of risk.