You have some property for sale and have received two offers. The first offer is for $89,500 today in cash

You have some property for sale and have received two offers. The first offer is for $89,500 today in cash. The second offer is the payment of $35,000 today and an additional $70,000 two years from today. If the applicable discount rate is 11.5 percent, which offer should you accept and why?    A.  You should accept the $89,500 today because it has the higher net present value. B.  You should accept the $89,500 today because it has the lower future value. C.  You should accept the first offer as it has the greatest value to you. D.  You should accept the second offer because it has the larger net present value. E.  It does not matter which offer you accept as they are equally valuable.

75.

Your local travel agent is advertising an upscale winter vacation package for travel three years from now to Antarctica. The package requires that you pay $20,000 today, $35,000 one year from today, and a final payment of $45,000 on the day you depart three years from today. What is the cost of this vacation in today's dollars if the discount rate is 9.75 percent?    A.  $85,931 B.  $88,695 C.  $90,219 D.  $90,407 E.  $92,478