Suppose that you have two options to loan money from a bank. Alternative A - You loan $10,000 from a bank today. You have to pay back the loan two years later with an interest of 1% compounded monthly. Alternative B - You loan $10,000 from a bank today. You have to pay back the loan two years later with an interest of 12% compounded annually. Which of the following would a rational decision-maker conclude? Alternative A is an economically preferred option. Alternative B is an economically preferred option. Alternative A and B are equivalent. Thus, it does not matter which option to choose. Comparing two alternatives is not possible because cash flows in the alternatives occur at different points in time