Juanita Martinez is ready to retire and has a choice of three pension plans. Plan A provides
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Juanita Martinez is ready to retire and has a choice of three pension plans. Plan A provides for an immediate cash payment of \(\$ 100,000\). Plan B provides for the payment of \(\$ 10,000\) per year for 10 years and the payment of \(\$ 100,000\) at the end of year 10 . Plan C will pay \(\$ 20,000\) 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.
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