Clients with accessibility issues often do not have the cash to pay for a wheelchair. In attempt to improve the sales of your company and help your customers, you offer three different purchasing plans: Plan A: 3-year rent-to-own plan, with a yearly fee of $750 and zero down payment Plan B: $1500 upfront Plan C: $650 down payment and two subsequent instalments of $650 each (after year 1 and after year 2)

a) Draw a cash-flow diagram for each plan. (3 marks)

b) Do an economic analysis and determine the best plan that the customers should choose, assuming a 10% compound interest rate per annum. (7 marks)