$We$ want $to$ determine whether $we$ should buy now $or$ later for

upgrading a piece $of$ equipment. $Ifwe$ select plan $A,$ the equipment will

$be$ purchased now for $$200,000.$ However, $if$ the company selects plan

I, the purchase will $be$ deferred for $3$ years when the cost $is$ expected

$to$ rise rapidly $to$ $$340,000.$ The real MARR $is$ expected $tobe12\%$ per

year. The inflation rate has averaged $6\mathrm{.}75\%$ per year.

From $an$ economic perspective, decide $ifwe$ should

buy now $or$ later:

$1.$ when inflation $is$ not considered

$2.$ when inflation $is$ considered