You have some property for sale and have received two offers. The first offer is for $189,000

Question:

You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the payment of $100,000 today and an additional $100,000 two years from today. If the applicable is 8. 75%, which offer should you accept and why?
You should accept the $189,000 today because it has the higher .
You should accept the second offer because you will receive $200,000 total.
You should accept the second offer because you will receive an extra $11,000.
You should accept the second offer because it has a present value of $194,555. 42.
You should accept the $189,000 today because it has the lower future value.
Net Present Value
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