25 points> You are given TWO plans to join a professional association. an X requires a payment of $185 starting in year 0, and three other equal payments of $185, for vears ONE, TWO and THREE. Plan Y requires a One- time payment of $500 NOW and no further payments. Assuming an analysis period of 4 years, which plan would you select based on Rate of Return method. The required MARR is 10%. i a. Draw the cash flow diagrams for the two alternatives Plan X Plan Y 185 186 185 185 0 b. Complete the cash flow table & the differential cash flow Differential Cash Flow Year Alt-X Alt-Y 185 185 1851 185 500 o 2 -315 185 185 185 0 3 0 0 0 Page 8 of 11 c. Draw the differential cash flow diagram 135 185 185 315 c. Calculate ROR Altx = 23.37 = -185 +185 ( 1,3) = 1 = 12%. Now: 259.37 i=151 New = 2 at Altx= - 500 ROR :-315 + 185 ( 10%,3) -315 + 185(2.487) 145.00 What is the calculated ROR? 145.01 d. Selection criteria: Alt-x e. Decision - Choose Alt._ Page 9 of 11