Which option should they choose

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Reference no: EM133908382

Problem

If TJ adds seated table service to his restaurant, he will need to reconfigure the front-of-house layout. This endeavor would require some renovations to the current space. TJ has received a quote of $30,000 for the renovation work. They currently have this amount in cash. TJ has two payment choices: They can pay in full now and receive a 7 percent discount; or They can pay half now and the remaining half in one year, with the postponed payment subject to a 4.0 percent interest charge. In this option, TJ would not receive the 7 percent discount. However, they have the option to invest their money in an account that pays 8 percent interest on an annual basis. Get the instant assignment help. Which option should they choose? Show your calculations.

Reference no: EM133908382

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