Your 18 year old friend is considering what to do with their working life until they retire at age 65. They've sought your advice. For simplicity, ignore taxes and assume that wages will be paid annually in arrears and will be constant (zero growth). The abbreviation 'k' (Greek kilo) means thousands, so 1k is 1000. Let the present be time zero (t=0) and the year that you retire be time 47 (t=47). Your friend is deciding between working as a: Entrepreneur, starting a small business, costing $150k immediately (t=0), which then pays $75k every year after that forever. When you retire in 47 years, just after you receive the $75k payment at that time, you can sell the business for $150k at time 47. Retail shop salesperson for $70k pa (47 payments from t=1 to t=47 inclusive); You estimate that: The required return is 10% pa with either career, and that they're equally risky; Your friend has the same skills as a retail salesperson, which is sufficient to successfully operate the business. Whoever buys the business, whether its your friend or not, could employ someone with the same skills as a retail salesperson to successfully operate the business, at the same $70k annual cost. The cashflows are shown below: Career Choices and Cash Flows Time Entrepreneur Retailer 0 -150 0 1 75 70 2 75 70 3 75 70 ... ... ... 47 225 (=75+150) 70 Which of the below statements is NOT correct? Question 10Select one: a. The net present value (NPV) of choosing to be an entrepreneur rather than a retailer is -$98.8662k. b. The payback period of choosing to be an entrepreneur rather than a retailer is 30 years. c. The IRR of choosing to be an entrepreneur rather than a retailer is less than the 10% pa required return. d. The business's current fair value is $75k, valued as a perpetuity of its incremental cash flows at the 10% pa required return, assuming that it's held forever and never sold. e. The business is over-priced