MT425:Determine the present value of each plan and select the best one.

MT425 / MT 425 Managerial Finance and Accounting Kaplan University (KU Campus) James JiambalvoManagerial Accounting, 4e Hoboken, NJ: John Wiley & Sons.
Unit 7: Capital Budgeting and Other Long-Run Decisions Calculate Present Value [LO 2] Juanita Martinez is ready to retire and has a choice of three pension plans. Plan A provides for an immediate cash payment of $200,000. Plan B provides for the payment of $20,000 per year for 10 years and the payment of $200,000 at the end of year 10. Plan C will pay $35,000 per year for 10 years. Juanita Martinez desires a return of 8 percent. Determine the present value of each plan and select the best one.