The General Hospital is evaluating new office equipment offered by four companies. The useful life of the equipment is 4 years.

1) What's the internal rate of return for Company A?

2) When doing an incremental analysis looking at it from an investment perspective the companies need to be ranked as follows:

(ABCD, ABDC, CDBA, DCBA) which one of the choices?

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First cost Maintenance and operating cost(Annual) Annual benefit Salvage value Company Company A B $15,000 1600 8000 3000 $18,000 1100 9000 3500 Company Company с D $25,0000 $20,000 400 13000 6000 900 11000 4500 First cost Maintenance and operating cost(Annual) Annual benefit Salvage value Company Company A B $15,000 1600 8000 3000 $18,000 1100 9000 3500 Company Company с D $25,0000 $20,000 400 13000 6000 900 11000 4500

Answer rating: 100% (QA)

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