3. This question continues a case introduced in the questions for Chapter 6. Malcolm, the mayor of Schlafenberg, is being asked to choose the best among three proposals for a new water treatment plant. Plan A will cost $3 million to construct, purify $2 million worth of water per year, and lead to $1 million in operating costs per year. Plan B will cost $4 million to construct, purify $3 million worth of water, and result in $1.5 million in annual operating costs. Plan C proposed by the mayor's son, will cost $7 million to construct, purify $4.5 million worth of water, and result in $2.5 million of operating costs per year. Given this information, answer the following questions: A. Assuming that each proposal will last for 5 years, find the present values of each using a 7 percent discount rate. Which policy would you recommend? End PgUp iI 0