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Q9 15 points You want to renovate your restaurant and these are your options: Option 1: Pay immediately $300,000 and generate an income stream at
Q9 15 points You want to renovate your restaurant and these are your options: Option 1: Pay immediately $300,000 and generate an income stream at the rate of f(t) = 520,000 dollars per year for the next 3 years. Option 2: Pay immediately $400,000 and generate an income stream at the rate of g(t) = 500,000 for the next 5 years. For both options you can invest your income at 10% interest rate compounded continuously. Which option will you choose and why? Use e -0.3 ~0.7408 and e -0.5 = 0.6065
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