You are considering two investment options. In option A, you have to invest $4500 now and $1000 three years from now. In option B, you have to invest $3500 now, $1000 a year from now, and $1000 three years from now. In both options, you will receive four annual payments of exist2000 each (you will get the first $2000 payment a year from now). Which of these two options would you choose based on the present worth criterion? Assume the interest rate is 10%.
Calculate the present worth of both projects.