Question No. 2: Short Case Study ST3.3 on page 130 of the textbook Contemporary Engineering Economics, fourth Edition, by Chan S. Park. ST3.3 A focal newspaper carried the following story: Texas Cowboys wide receiver John Young will earn either $11,406,000 over 12 years or $8,600.000 over 6 years. Young must declare which plan he prefers. The S11 million package is deferred through the year 2017, while the nonde- ferred arrangement ends after the 2011 season. Regardless of which plan is chosen, Young will be playing through the 2011 season. Here are the details of the two plans: Nondeferred Plan 2006 $2,000,000 2007 900.000 2008 1,000,000 2009 1.225,000 1,500,000 1.975,000 2010 2011 Deferred Plan 2006 $2,000,000 2007 566,000 2008 920,000 2009 930,000 2010 740,000 2011 740,000 2012 740,000 2013 790,000 2014 540,000 2015 1,040,000 2016 1,140,000 2017 1,260,000 Total $11,406,000 MNG (Assi SEM Page 1 of 3 Total $8.600.000 (a) As it happened, Young ended up with the nondeferred plan. In retrospect, if Young's interest rate were 6%, did he make a wise decision in 2006? (b) At what interest rate would the two plans be economically equivalent