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Your firm buys a $40,000 tractor from a supplier. This supplier offers you three payment plans: Today in 6 months in 1 year Plan A

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Your firm buys a $40,000 tractor from a supplier. This supplier offers you three payment plans: Today in 6 months in 1 year Plan A $24,000 $8,000 Plan B $20,000 $0 $8,000 $20,000 $7,000 Plan C $20,000 $13,000 To be clear, in Plan A, you would pay $24,000 today, $8,000 in 6 months, and the final $8,000 in 1 year. Assume you will definitely need to pay in full; there is no chance the supplier goes out of business. Which payment plan would you choose? Why

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