Which plan is the least expensive way to purchase plant maintenance equipment? The discount rate is 11%.

Plan A: $50,000 down, equal annual payments of $25,115.12 for 20 yrs.

Plan B: $0 down, equal annual payments of $30,571.72 for 20 yrs.

Plan C: $100,000 down, equal annual payments of $21,975.74 for 20 yrs.

Draw the cash flow diagram for each case.

Compare each case to the other. Which plan is best one A, B, or C?