The owner of the Krusty Krab is considering selling his restaurant and retiring. An investor has offered to buy the Krusty Krab for $350,000 whenever the owner is ready for retirement. The owner is considering the following threealternatives:

1.Sell the restaurant now and retire.

2.Hire someone to manage the restaurant for the next year and retire. This will require the owner to spend $50,000 now, but will generate $100,000 in profit next year. In one year the owner will sell the restaurant for $350,000.

3.Scale back the restaurant's hours and ease into retirement over the next year. This will require the owner to spend$40,000 on expenses now, but will generate $75,000 in profit at the end of the year. In one year the owner will sell the restaurant for $350,000.

If the discount rate is 15%, then the alternative which the owner should choose is: