3) Suppose GuS is considering working with Live In Person (LP), a new beverage wholesaler who distributes to snack bars and restaurants in sports and event stadiums and arenas. LP has given GuS a choice for how it will be paid by LP. Assume that LP purchases $100,000 worth of soda from GuS in its first purchase - so the regular purchase price that LP would pay to GuS is $100,000. Option 1: LP will pay GuS immediately, but will get a 2% discount from the regular purchase price of $100,000. Option 2: LP will pay GuS on a schedule where it pays GuS 1/4 of the regular purchase price immediately after purchase, 1/4 of the regular purchase price one month after the purchase, and 1/2 of the regular purchase price three months after the purchase. Suppose that GuS uses a 1% monthly discount rate to value future cash flows. Which payment arrangement, Option 1 or Option 2, should GuS prefer, and why? (28 pts.) 3) Suppose GuS is considering working with Live In Person (LP), a new beverage wholesaler who distributes to snack bars and restaurants in sports and event stadiums and arenas. LP has given GuS a choice for how it will be paid by LP. Assume that LP purchases $100,000 worth of soda from GuS in its first purchase - so the regular purchase price that LP would pay to GuS is $100,000. Option 1: LP will pay GuS immediately, but will get a 2% discount from the regular purchase price of $100,000. Option 2: LP will pay GuS on a schedule where it pays GuS 1/4 of the regular purchase price immediately after purchase, 1/4 of the regular purchase price one month after the purchase, and 1/2 of the regular purchase price three months after the purchase. Suppose that GuS uses a 1% monthly discount rate to value future cash flows. Which payment arrangement, Option 1 or Option 2, should GuS prefer, and why? (28 pts.)