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You are considering two investment options. In option A, you have to invest $5,000 now and $1,000 three years from now. In option B. you

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You are considering two investment options. In option A, you have to invest $5,000 now and $1,000 three years from now. In option B. you have to invest $3,500 now, $1,500 a year from now, and $1,000 three years from now. In both options, you will receive four annual payments of $2,000 each. (You will get the first payment a year from now ) Which of these options would you choose based on (a) the conventional payback criterion, and (b) the present worth criterion, assuming 10% interest? Assume that all cash flows occur at the end of a year Click the icon to view the interest factors for discrete compounding when / = 10% per year (a) The conventional payback period for option A is years. (Round to the nearest whole number place

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