Financial analysis tools enable "apples and apples" comparisons by evaluating cash flows over time in present value, allowing proper comparison with an initial investment. Which of the following scenarios would provide an "apples and apples" insight?

Select one:

a.

An outpatient clinic costs $36 million. It produces profits of $3 million per year for 10 years.

b.

The nursing staff requires additional training, which will cost $100,000. It is expected that this training will reduce the need for new nursing staff three years from now.

c.

A diagnostic machine requires an initial investment of $5 million. It can be used for 10 years and will produce an operating profit each year.

d.

The present value of the future cash inflows for a new OR facility is calculated to be $25 million. The initial cost of the center is $20 million.