It is the beginning of September and you have been offered the following deal to goheli-skiing. If you pick the first week in January and pay for your vacationnow, you can get a week ofheli-skiing for $2,100. However, if you cannot ski because the helicopters cannot fly due to badweather, there is nosnow, or you getsick, you do not get a refund. There is a 45% probability that you will not be able to ski. If you wait until the last minute and go only if you know that the conditions are perfect and you arewell, the vacation will cost you $5,300. You estimate that the pleasure you get fromheli-skiing is worth $6,400 per week to you(if you had to pay more thanthat, you would choose not togo). If your cost of capital is 18% peryear, should you book ahead orwait?