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 i = 10% per year. (a) The conventional payback period for option Aisyears. (Round to the nearest whole number place.) - X More info W NZ 1 2 3 Single Payment Compound Present Amount Worth Factor Factor (F/P, i, N) (P/F, I, N) 1.1000 0.9091 1.2100 0.8264 1.3310 0.7513 1.4641 0.6830 1.6105 0.6209 Compound Amount Factor (F/A, I, N) 1.0000 2.1000 3.3100 4.6410 6.1051 Equal Payment Series Sinking Present Fund Worth Factor Factor (A/F, I, N) (P/A, I, N) 1.0000 0.9091 0.4762 1.7355 0.3021 2.4869 0.2155 3.1699 0.1638 3.7908 Capital Recovery Factor (A/P, i, N) 1.1000 0.5762 0.4021 0.3155 0.2638 4 5 6 7 8 1.7716 1.9487 2.1436 2.3579 2.5937 0.5645 0.5132 0.4665 0.4241 0.3855 7.7156 9.4872 11.4359 13.5795 15.9374 0.1296 0.1054 0.0874 0.0736 0.0627 4.3553 4.8684 5.3349 5.7590 6.1446 0.2296 0.2054 0.1874 0.1736 0.1627 9 10 Print Done