You are given TWO plans to join a professional association. an X requires a payment of $185 starting in year 0, and three other equal payments of $185, for years ONE, TWO and THREE. Plan Y requires a One- time payment of $500 NOW and no further payments. Assuming an analysis period of 4 years, which plan would you select based on Rate of Return method. The required MARR is 10%.

a. Draw the cash flow diagrams for the two alternatives

b. Complete the cash flow table & the differential cash flow Differential Cash Flow Year

year	Plan-x	Plan-y	Differential Cash Flow

c. Draw the differential cash flow diagram

d. Calculate ROR

What is the calculated ROR? ____________

e. Selection criteria: ______________

e. Decision - Choose Alt._______