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 three alternatives:

Sell the restaurant now and retire.

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.$

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 interest rate is $7\%,$ calculate the NPV of all three alternatives. Based on your calculation, which of the three alternatives is the best choice?