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You are considering two investment options. In option A. you have to invest $6,000 now and $700 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 $6,000 now and $700 three years from now. In option B. you have to invest $3,000 now, $1,300 a year from now, and $800 three years from now. In both options, you will receive four annual payments of $1,900 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 Ais The conventional payback period for option Bis years. (Round to the nearest whole number place.) years. (Round to the nearest whole number place) Which of these options would you choose based on the conventional payback criterion? Choose the correct answer below. O A. Option B OB. Option A OC. Both options are equally likely (b) The present worth of the option A is $ (Round to the nearest dollar.) The present worth of the option is $ (Round to the nearest dollar.) Which of these options would you choose based on the present worth criterion? Choose the correct answer below. O A. Option A OB. None of the options O c. Option B ure oft thed 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, 1, N) (P/A, 1, N) 1.0000 0.9091 0.4762 1.7355 0.3021 2.4869 0.2155 3.1699 0.1638 3.7908 Capital Recovery F actor (A/P, 1, N) 1.1000 0.5762 0.4021 0.3155 0.2638 ns wd option vcWN- 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 r answ

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