Business Decisions Sharon, the owner of the Brentwood Motel, is planning to renovate all the rooms in her motel. There a

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Business Decisions Sharon The Owner Of The Brentwood Motel Is Planning To Renovate All The Rooms In Her Motel There A 1 (27.82 KiB) Viewed 49 times

Business Decisions Sharon, the owner of the Brentwood Motel, is planning to renovate all the rooms in her motel. There are two plans before her. Plan A calls for an immediate cash outlay of $300,000, whereas plan B calls for an immediate outlay of $200,000. Sharon estimates that adopting plan A would yield an income stream of f(t) = 3,060,000e0.02t dollars/year for the next 5 years, whereas adopting plan B would yield an income stream of g(t) = 3,300,000 dollars/year for the next 5 years. If the prevailing rate of interest is 3% / year compounded continuously, which plan will yield the higher net income (in dollars) at the end of 5 years? O plan A Oplan B