=+18-22 KK Comparison of projects, no income taxes (CMA, adapted) OBJECTIVES 3, 4, 9 Santolis is a rapidly growing eco-technology company that has a required rate of return of 8%. It plans to build a new facility in Adelaide. The building will take two years to complete. The building contractor offered Santolis a choice of three payment plans, as follows:

◗ Plan I. Payment of $750000 at the time of signing the contract and $5250000 upon completion of the building. The end of the second year is the completion date.

◗ Plan II. Payment of $2000000 at the time of signing the contract and $2000000 at the end of each of the two succeeding years.