A construction crane collapsed while working on a new building for Metro City. A pedestrian was killed. The husband of the victim is suing Metro City and the construction company. The city attorney, in consultation the citys liability insurer and the construction company, has offered two out-of-court settlements to the husband of the victim. Here are the settlement options

Option 1: Four annual payments of $225,000 with the first payment one year from today.

Option 2: Five Payments of $200,000 with the payments one year, three years, five years, seven years, and nine years from today.

Assuming a 6% discount rate, which settlement option is the best from the perspective of Metro City?