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PLEASE PROVIDE CLEAR EXPLANATION OF THE CALCULATIONS.thanks 6. You have just been hired as a consultant to help a firm to decide which of three

image text in transcribedPLEASE PROVIDE CLEAR EXPLANATION OF THE CALCULATIONS.thanks

6. You have just been hired as a consultant to help a firm to decide which of three options to take to maximize the value of the firm over the next three years. The following table shows year- end profits for each option Costs of funds are expected to be stable at 8 percent over the next three years. Option A Profits in Year 1 $30,000 $50,000 $70,000 Profits in Year 2 $100,000 $90.000 $80,000 Profits in Year 3 $115,000 $100,000 $90,000 B C Which option will you recommend and why? (8 marks)

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