You have some property for sale and have received two offers. The first offer is for $$197,500$ today in cash. The second offer is the payment of $$50,625$ a year from now and an additional $$200,000$ two years from today. If the applicable discount rate is $12\mathrm{.}50$ percent, which offer should you accept and why?

You should accept the $$197,500$ today because it has the higher present value.

You should accept the $$197,500$ today because it has the lower future value.

You should accept the second offer because you will receive about $$5,525$ more in today's dollars.

You should accept the second offer because you will receive $$245,000$ total.

You should accept the second offer because it has a present value of $$222,777\mathrm{.}78.$