Tom Thurlow wants to buy a boat but is short of cash. Two alternatives are available Tom can accept $\$ 2.000$ per year from his brother for partial ownenship in the boat. or he can earn money by renting the boat to others. Rental income would be $\$ 2,500$ per year. Under either alternative, the boat will last eight yean If Tom rents the bout out, he will have to pay $\$ 3,000$ to overhaul the engine at the end of the fourth year Which alternative should Tom select, assuming that the cost of capital is 12 percent and that only quantitative considerations are involved?