a) You have a choice between two investments both at a prevailing interest rate is 12%. One investment (called plan A) pays $424k at the end of 2 years and the other pays $200k at the end of each of the next 2 years (called plan B). Do you prefer Plan A or Plan B or are they both the same from an engineering economics perspective ? (Hint: Compare present values and round to the nearest $1k)

b) how much could you afford to invest in Plan A at 12% ? Asked another way, what would you be willing to invest at time zero ?