A small company's president is to decide on one of the following two business options.

a. A manufacturing contract that will generate $200K per year net income (profit minus expense) for 9 consecutive years, effective from the second year.

b. A manufacturing contract that will generate $175K per year net income (profit minus expense) for 10 consecutive years, effective from the first year.

Determine which plan the president of this company should select. Assume that the investment rate is 8 percent, compounded yearly.