Having done so well in BUSI 3550, you have been asked to write a textbok, congratulations!...

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Having done so well in BUSI 3550, you have been asked to write a textbok, congratulations! Two publishers have approached you with contracts. They are mutually exclusive contracts that pay you upfront. You will have labor costs each year after. $40,000.00 is the pay in the first year of contract A, while contract B pays $100,000.00 upfront. For contract A, the labor costs in year 1 and 2 are $0.00 and -$55,000.00, while they are -$55,000.00 and -$65,000.00 for contract B. At what range of discount rates would you accept contract A? How about contract B? When would you reject both? Having done so well in BUSI 3550, you have been asked to write a textbok, congratulations! Two publishers have approached you with contracts. They are mutually exclusive contracts that pay you upfront. You will have labor costs each year after. $40,000.00 is the pay in the first year of contract A, while contract B pays $100,000.00 upfront. For contract A, the labor costs in year 1 and 2 are $0.00 and -$55,000.00, while they are -$55,000.00 and -$65,000.00 for contract B. At what range of discount rates would you accept contract A? How about contract B? When would you reject both?