Early in 2014, Samos, Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $75,000 at year-end for each of the next three years. The plant assets should be valued at

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The plant assets should be valued at the present value of a $75,000 annuity for three years discounted at the market interest rate, as this reflects the actual cost of financing the purchase. Option A doesn't take into account the market interest rate, while option B and D do not reflect the time value of money.