In 2018, Bob will sell land that he bought in 2008 for \(\$ 50,000\) to Tom. The selling price is \(\$ 250,000\). Tom has given Bob two options for the sale. Under option 1, Bob would receive the \(\$ 250,000\) at the date of sale. Under option 2, Bob would receive \(\$ 125,000\) at sale date and \(\$ 125,000\) one year later (in 2019). Tom also would pay Bob \(\$ 8,750\) interest in 2019 (at the time he pays the remaining \(\$ 125,000\) to \(\mathrm{Bob}\) ). Bob's overall tax rate is \(35 \%\) and the land is a capital asset to Bob. Bob's capital gain tax rate is \(15 \%\). Bob uses a \(5 \%\) after-tax discount rate for all his investment decisions. Which option should Bob take?

a. Option 1

b. Option 2

c. Neither, Bob is indifferent