Question 2 (13 marks) You are considering two investment plans proposed by your investment consultant. The details of the projected incomes of the two plans are as follows: Plan A: An annual amount of $500,000 will be generated at the beginning of each of the next six years. Plan B: An amount of $800,000, $600,000, $400,000, $400,000, $400,000 and $400,000 will be generated at the end of each of the next six years, respectively. The yearly discount rate is 10%. (a) Use the Net Present Value method to determine which plan is worth to take if the initial investments for Plans A and B are both $2,500,000. (10 marks) (b) Explain (without any calculation) why the conclusion arrived at part (a) is consistent with the time value of money concept