Imaging that you are operating a chain of GYMs in Valencia and you are looking at 2 (two) options to increase revenue across your GYM chain. The estimated impact of the 2 (two) options on result (*) in year 1 and one-off associated costs of each option are given in the table below. Cost of option (one off cost) Probability of high GYM attendance Probability of low GYM attendance Result (*) of high GYM attendance Result (*) of low GYM attendance Launch Loyalty Card 100,000 0.55 0.45 800,000 250,000 Cut Prices 200,000 0.75 0.25 850,000 400,000 In addition, you have been told by your accounting department that the cost of capital is 10% Assume that costs of an option are incurred at the beginning of the year and results are achieved at the end of the year. Note: (*) Result = sales - costs. These costs do not include the cost of an option. (**) You can't launch loyalty card and cut prices at the same time. Based on the information provided above which option should you take if any? Explain. Imaging that you are operating a chain of GYMs in Valencia and you are looking at 2 (two) options to increase revenue across your GYM chain. The estimated impact of the 2 (two) options on result (*) in year 1 and one-off associated costs of each option are given in the table below. Cost of option (one off cost) Probability of high GYM attendance Probability of low GYM attendance Result (*) of high GYM attendance Result (*) of low GYM attendance Launch Loyalty Card 100,000 0.55 0.45 800,000 250,000 Cut Prices 200,000 0.75 0.25 850,000 400,000 In addition, you have been told by your accounting department that the cost of capital is 10% Assume that costs of an option are incurred at the beginning of the year and results are achieved at the end of the year. Note: (*) Result = sales - costs. These costs do not include the cost of an option. (**) You can't launch loyalty card and cut prices at the same time. Based on the information provided above which option should you take if any? Explain