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Consider two investment options, A and B. For option A you must invest $5,000 now and...

Consider two investment options, A and B. For option A you must invest $5,000 now and an additional $1,000 three years from now. For option B you must invest $3,500 now, $1,500 next year, and $1000 three years from now. In both cases you will receive four annual payments of $2,000, the first of these payments one year from now. Which option would you prefer using

a) simple payback method

b) discounted payback method, assuming a MARR of 10%

c) present worth, assuming a MARR of 10%

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