You are considering two risk-free investment plans proposed by your investment consultant. The details of the projected incomes of these two plans are as follows: Plan 1: An amount of $75,000 will be received at the beginning of each of the next four years. Plan II: A series of year-end payments of $60,000, $70,000, $80,000 and $90,000 will be received over the next four years, respectively. The relevant yearly discount rate is 5%. The following parts are independent of each other. (a) Describe the notion of time value of money. (2 marks) (b) Without calculations, explain which plan you would be willing to pay more to acquire. (4 marks) (c) If the initial investment for Plan I is $100,000, calculate the amount of the initial investment for Plan II that would create the same value for the shareholders. (12 marks)