George is in contract negotiations with a publishing house for his new autobiography. He has two options. With option 1, he would receive $250,000 up front, and then receive royalties of $12,000 at the end of each year for the next five years. With option 2, he can receive $310,000 up front and also a one-time bonus of $9,000 in Year 1. Which of the two options should he accept? The discount rate for both options is 10%. A. NPV for option 1= $ 295,489.4; NPV for option 2= $ 318,181.82; Answer: Option 2 B. IRR for Option 1= 11.9%; IRR for Option 2= 13.7%; Answer: Option 2 C. NPV for Option 1= $ 285,489.4; NPV for Option 2= $ 268,181.82; Answer: Option 1 D. IRR for Option 1= 12.7%; IRR for Option 2= 10.3%; Answer: Option 1