Three different plans were presented to the GAO (General Accounting Office) by a high-tech facilities manager for operating a portable cyber security facility.

Plan A: Renewable 1-year contracts with payments of $1 million at the beginning of each year.

Plan B: A 2-year contract that requires three payments of $600,000 each, with the first one to be made immediately and the second and third payment made at the beginning of the following two 6-month intervals; no payments required during the second year of the contract.

Plan C: A 3-year contract that entails a payment of $1.5 million now and another payment of $0.5 million 2 years from now. Assuming the GAO can renew any of the plans under the same conditions, if it decides to do so, which plan is best on the basis of a present worth analysis at an interest rate of 6% per year, compounded semiannually? Solve using

(a) Factors

(b) A spreadsheet.