Which Option would yield the higher Net Present Value of Expected Values?

Option 1: a sale at the end of Year 3 for $2,000,000 with an Annual Discount Rate of 7%,

OR

Option 2: a sale at the end of Year 3 for $1,800,000 with an Annual Discount Rate of 4%?

Answers:

• A) Not enough information provided
• B) Both Options equal the same Net Present Value of Expected Values
• C) Option 2
• D) Option 1