adapted) New Med Corporation is a rapidly growing biotech company that has a required rate of return of 12%. It plans to build a new facility in Santa Clara County. The building will take 2 years to complete. The building contractor offered New Med a choice of three payment plans, as follows: PLAN I: Payment of $150,000 at the time of signing the contract and $4,575,000 upon completion of the building. The end of the second year is the completion date. PLAN II: Payment of $1,775,000 at the time of signing the contract and $1,775,000 at the end of each of the two succeeding years. PLAN III: Payment of $450,000 at the time of signing the contract and $1,575,000 at the end of each of the three succeeding years.