You have some property for sale and have received two offers. The first offer is for $189,000 today in cash. The second offer is the payment of $100,000 today and an additional $100,000 two years from today. If the applicable discount rate is 8.75%, which offer should you accept and why?

a. You should accept the $189,000 today because it has the higher net present value.

b. You should accept the $189,000 today because it has the lower future value.

c. You should accept the second offer because you will receive $200,000 total.

d. You should accept the second offer because you will receive an extra $11,000.

e. You should accept the second offer because it has a present value of $194,555.42.