You would like to vacation in Hawaii for one week each year. You can buy a time share for a vacation home in Hawaii for $18,500 today and a maintenance fee of $600 per year starting next year. You expect to sell the time share in 10 years for $19.000. Alternatively you can just pay for the week vacation each year (starting next year). Each year will cost you $1,500. If your investments earn 5% per year (compounded annually) which alternative is cheaper and by how much in present value terms? O Buy the time share it will save you $114 O Pay each year it will save you $122 Buy the time share it will save you $120 O Pay each year it will save you $110