How to solve

You have some property for sale and have received two offers. The first offer is for $$70,000$ today in cash. The second offer is the payment of $$15,000$ today and an additional guaranteed $$54,000$ two years from today. If the applicable discount rate is $8$ percent, which offer should you accept and why?

Multiple Choice

You should accept the $$70,000$ today because it has the higher present value.

You should accept the $$70,000$ today because it has the lower future value.

You should accept the first offer as it is a lump sum payment.

You should accept the second offer because it has the higher present value.

It does not matter which offer you accept as they are equally valuable.