Allied Plastics borrows $240,000 at a fixed annual compound interest rate. The loan is repaid over a 5-year period using one of four payment plans: Plan 1 makes end-of-year interest payments, with a payment of principal at the end of the 5-year loan period; Plan 2 makes five equal end-of-year principal payments plus unpaid interest to date; Plan 3 makes five equal annual payments; Plan 4 makes a lump sum payment of principal and unpaid interest at the end of the 5-year loan period. The income tax rate is 25%. Allied Plastics has a real minimum attractive rate of return of 9% compounded annually.

Using an after-tax present worth analysis, rank order the four payment plans using the annual compound interest of 9% and inflation rate of 0%.