Pretend you are a private equity analyst with two investment options. Option (1) requires a $1, 000, 000 initial investment (today) in DAT enterprises, a rm that specializes in making shoes that won't catch on re if you run too fast in them. You expect your investment in DAT will generate $100k in income per year beginning at the end of year 3. You will be able to sell DAT enterprises for $2, 500, 000 in year 8. Option (2) requires only a $250, 000 initial