Operating an identity-theft scanning facility

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Three different plans were presented to the GAO by a tech facility manager for operating an identity-theft scanning facility. Plan A involves renewable 1 year contracts with payments of $1million at the beginning of each year. Plan B is a 2 year contract that requires four payments of $600,000 each with the first one made now and the other at 6-month intervals. Plan C is a 3 year contract that entails a payment of $1.5million and a second payment of $500,000 2 years from now. Assuming that the GAO could renew any of the plans under the same payment conditions. Which plan is the best on the basis of a present worth analysis at an interest rate of 6% per year compounded semiannually? I JUST NEED the CAASH FLOW diagram

Reference no: EM131082145

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