You have put your rental up for sale and have received offers from two prospective buyers. The first offer is for $89,500 today in cash. The second offer is the payment of $35,000 today and an additional guaranteed $70,000 two years from today. If the applicable discount rate is 14.5 percent, which offer should you accept and why? Multiple Choice O You should accept the second offer because it has the larger net present value. You should accept the first offer as it is a lump sum payment. You should accept the $89,500 today because it has the higher net present value. It does not matter which offer you accept as they are equally valuable. You should accept the $89,500 today because it has the lower future value.

You have put your rental up for sale and have recelved offers from two prospective buyers. The first offer is for $89.500 today in cash. The second offer is the payment of $35,000 today and an additional guaranteed $70,000 two years from todoy. If the opplicable discount rate is 14.5 percent, which offer. should you accept and why? Multiple Choice You should accept the second ofler becouse it has the larger net present value. You should accept the first offer as it is a lump sum payment. You should acceps the $89,500 today because it has the higher not present value. If does not matter which affer you accept as they are equally voluable. You should accept the $89500 today because it has the lower future valve