It is the beginning of October and you have been offered the following deal to go to Cancun for a one-week all-inclusive vacation for two. If you pick the first week in February for the vacation (during the reading break) and pay for your vacation now, you must pay $2500. However, if you cannot fly for any reason, you do not get a refund. There is a 40% probability that you will not be able to fly because of bad weather or prior commitments. If you wait until the last minute and go only if you know that the conditions are perfect and you are free, the vacation will cost $4000. You estimate that the pleasure you get from vacationing in Cancun is worth $6000 per week to you (if you had to pay any more than that, you would choose not to go). If your cost of capital is 8% per year, should you book ahead or wait? Use Decision tree and NPV analysis to reach your answer. (8 marks)