Is this correct based on the question?

4. The Penn Central Railroad has not paid local taxes since 1969, under federal bankruptcy court protection. Some years later the court required Penn Central to offer municipalities a choice of two payment options to clear this liability. (Penn Central had been absorbed by Conrail, so there were no future tax liabilities involved.) The choices were (a) immediate payment of 44 percent of the total liability or (b) immediate payment of 20 percent of the liability, 10 percent paid at the end of each of the next three years, and 50 percent paid at the end of ten years. Which alternative would you recommend to a municipality and why U Assume X= 500 dollar Pay 44% liability 0.++ 500 220 Assume discount rate = 10% 0.2 500 1 2 Liability X 3 4 Option A 5 6 Payment NPV 7 8 9 10 Option B 11 72 Payment NPV 13 14 Year 1 15 Year 2 16 Year 3 17 Year + 18 Year 5 19 Year 6 20 Year 7 21 Year 8 22 Year 9 23 Year 10 24 25 Total Payment in NPV ac 0.1 0.1 0.1 0 0 0 0 0 0 0.5 500 500 500 500 500 500 500 500 500 500 100 NPV 50 S220.73 50 $192.80 50 S162.08 0 $128.29 0 $141.12 0 $155.23 0 $170.75 0 $187.89 0 S206.61 250 S227.27 SS20.79