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Adwoa's friend tells her that 2001: A Space Odyssey is good. Adwoa is trying to decide between reading the book and watching the movie. Assume

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Adwoa's friend tells her that 2001: A Space Odyssey is good. Adwoa is trying to decide between reading the book and watching the movie. Assume that the movie yields an immediate utility of 1 in the single period (single day) during which Adwoa watches it, and a utility of 0 thereafter. Assume that the book yields a utility of 0.1 for each of 100 periods during which she reads it, and a utility of 0 thereafter. Adwoa's utility function at time t is U, = u(c) + 8, & u(c;), representing the fact that she discounts the utility of future consumption. First, suppose that B = 0.5 and 6 = 0.92. What is Adwoa's present value of seeing the movie today? What is Adwoa's present value of reading the book, starting today

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