4 b) A firm is faced with two alternative investment plans. Plan A will cost K750 and plan B K940. Both plans involve purchase of equipment the life of which is four years. It is estimated that the cash flows during that time will be: Year 1 2 3 Plan A 300 400 200 Plan B 500 300 300 Given that the firm expects a return of 20 per cent on capital employed, which plan would you recommend? 300 400