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5. (20 points) Life cycle cost analysis. Consider a subscription to a news service. There are two options to pay for the subscription. - Option
5. (20 points) Life cycle cost analysis. Consider a subscription to a news service. There are two options to pay for the subscription. - Option 1: $300 for a 3-year subscription. - Option 2: $400 for a 5-year subscription. Regardless of the option selected, assume that you intend to renew your subscription indefinitely and that the price(s) for the subscription will not change. Under what circumstances is option 1 more economically attractive than option 2? Hint: Consider the time value of money
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