A former student of an engineering department wishes to donate to the department’s scholarship fund. Three options are available:,Plan A. $60,000 now.,Plan B. $15,000 per year for 8 years beginning 1 year from now.,Plan C. $50,000 three years from now and another $80,000, five years from now.,,From the department’s perspective, it wants to select the plan that maximizes the buying power of the dollars received. The department head asked the engineering professor evaluating the plans to account for inflation in the calculations. If the donation earns a real 10% per year and the inflation rate is expected to average 3% per year, which plan should be accepted?,,?,
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