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please show work You own a movie theater and have to replace all the seats in the theater. You have two choices. a. Option 1:

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You own a movie theater and have to replace all the seats in the theater. You have two choices. a. Option 1: You can spend $300,000 on cheaper seats that will cost $12,000 to clean each year and last four years. b. Option 2: You can spend $420,000 on better quality seats that will cost only $6000 to clean each year and last seven years. Ignoring taxes and depreciation, which option would you pick, if your cost of capital is 10%? O a. They are equivalent O b. Option B O c. Not enough information to solve. O d. Option A

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