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Having done so well in BUSI 3 5 5 0 , you have been asked to write a textbok, congratulations! Two publishers have approached you

Having done so well in BUSI 3550, you have been asked to write a textbok, congratulations! Two publishers have approached you with contracts. They are mutually exclusive contracts that pay you upfront. You will have labor costs each year after. $37,000.00 is the pay in the first year of contract A, while contract B pays $80,000.00 upfront. For contract A, the labor costs in year 1 and 2 are $0.00 and -$45,000.00, while they are -$45,000.00 and -$45,000.00 for contract B. At what range of discount rates would you accept contract A? How about contract B? When would you reject both?

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