Your friend wants to borrow $10,000 from you and gives you three options for repayment. Assuming a discount rate of 5%, which of the following options should you choose?

Option A: $12,000 lump sum paid 4 years from now

Option B: $11,500 lump sum paid 3 years from now

Option C: $1,000 a year for the next 10 years

Group of answer choices

b) Option B because it is the highest NPV

e) You should not lend the money because all the options are negative NPV investments

a) Option A because it is the highest NPV

c) Option C because it is the highest NPV

d) You are indifferent because they all have the same NPV