2.Your friend wants to borrow $5,500 from you and gives you three options for repayment. Assuming a discount rate of 4.5%, which of the following options should you choose? Option A: $1,600 a year for the next 4 years Option B: $7,000 lump sum paid 3 years from now Option C: $750 a year for the next 12 years

a You should not lend the money because all options are negative NPV investments

b Option C because it is the highest net present value

c Option A because it is the highest net present value

d You are indifferent because they all have the same net present value e Option B because it is the highest net present value