donald found two feasible options for an apartment to rent for the next two years option A requires monthly rent of $1,350.00 to be paid at the beginning of each month. Option B allows for end-of-month payments of $1,350.00 (same Amenities as in Option A) Donald uses fair high annual discount rate of 24% (sadly, he is also a high credit risk)

Find the PB of the future rent payments for both options over the 2-year time period and explain which one Donald will prefer is he bases his decision strictly on cash flow.

Option A Option B Present value to $ Donald would choose v , because he would effectively be paying in rent over this two-year period