Stu can purchase a one-bedroom house near his college today for $110,000, including the cost of some minor repairs. He expects to be able to resell it in four years for $150,000 if he just puts a little effort into cleaning up the property. At a discount rate of 6.5 percent, what is the expected net present value of this purchase opportunity?
a. $3,001.61
b. $2,487.43
c. $6,598.46
d. $7,208.18
e. $4,311.02