H23 Q3 (25 pts). On December 1, your friend is going to let you borrow his Costco membership card. At Costco, you have the opportunity to buy a year's worth of popcorn for $120. Alternatively, you can buy popcorn every month at Dollar Value. Based on your receipts from last year, you predict that your popcorn purchases will be as follows: Money to be spent on popcorn: Month $16 $13 $16 $14 $17 Dec Jan 5 Feb 7 Mar 8 Apr 9 May 10 Jun 11 Jul 12 Aug 13 Sep 14 Oct 15 Nov $49 $16 $14 $15 $13 $15 $20 16 Assume that you would make your Dollar Value purchases at the beginning of each month (Dec 1, Jan 1, etc). 17 18 a) What is the monthly incremental rate of return? 19 b) What is the yearly incremental rate of return? 20 c)If your MARRis10%, what-should you-do