olution:$1.$Overall approach $-$First $-$ take the initial investment amountSecond $-$ expected net cash inflowsThird $-$ adjustmentsForth $-$ mention discount rateFifth $-$ apply NPVSixth $-$ determine the PBPLast $-$ compute IRROther considerations $-$ period, working capital, etcNPV is the most important criteria for evaluating the projectAre the cash flow projections correct? Is the project period correctly estimated?$1.$The three measures are$-$NPV provides the best result for project analysis whether a project should be accepted or rejected based on NPV value.The PBP gives the period in which capital investment is fully receivedIRR $>$ required return then capital investment should be accepted otherwise not. $2.$NPV $$111,721$PBP $3\mathrm{.}25$ yearsIRR $10\%3.$Capital investment should be made as the NPV is positive $4.$Two main risks are $-$First $-$ the risk of incorrect estimation of expected CFSecond $-$ the risk of changing the discount rate Additional requirementsDetails put in slides by $-$ creating slides, put the values given related to cash inflows, initial investment, discount rate, and then apply measures to evaluate the projectInvestment should be done as net cash flow is positive $$1,000,000..$Explanation :$-1.$The capital purchase shall be evaluated using the inputs given like $-$ initial investment in equipment, cash inflows, discount rate, and considerable factors.First of all the evaluation process shall include the capital investment that is medical equipment or machine purchased which costs $$3$M$.$Second, take the expected net cash inflow for the period given which represents the net earnings that would be gained each year.Third, look for the adjustments which are necessary to adjust the cash inflows.Forth put the capital rate that shows the required returnFifth compute the NPV as the measure of capital investmentSixth compute the PBP which shows the capital investment amount PBPLast, compute the IRR which represents the returns gained with comparison to the required returnOther considerations which should be considered like $-$ working capital, project period, capital expenditure, depreciation, etc.NPV is the most significant criterion for evaluating the equipment investment which represents the current value of the project using expected adjusted CF$.$ If the project's NPV value is greater than zero then the capital investment must be made.Are the CF projections correct? Is the project period correctly estimated?$1.$The three measures that would be the best to evaluate the capital investment are$-$NPV is a very common measure to evaluate the project analysis. NPV reduces or discounts the expected CF and the initial investment will be deducted from the resulting value to obtain the fair value in the current period. NPV provides the best result for project analysis whether a project should be accepted or rejected based on NPV value.The PBP is another best measure to evaluate the capital investment because it provides the period by deducting the initial investment from expected CF yearly basis and gives the period in which the initial investment completely recovered. It tells about the period in which capital investment is fully received therefore PBP should be applied to analyze the capital investment.IRR also evaluates the capital investment or project analysis as it provides the returns in percentage terms if the IRR $>$ required return then the investment in equipment must be done otherwise not$\mathrm{.}2.$Computations using three measures:ACDEF$1$Evaluation of capital investment in equipment using three different measure$3.$The investment in equipment must be accepted as all three measures provide positive results. NPV provides a positive $$111,721$; PBP of $3\mathrm{.}25$ years; and IRR is $10\%$ which exceeds the required return of $9\%.$ Therefore, capital investment should be made. $4.$The two main risks which would affect the recommendation are $-$First $-$ incorrect estimation of expected CF$\text{'}$s risk that would change the entire decision of the capital equipment investment.Second $-$ changing the discount rate risk also would affect the capital investment decision made on the current rate of return.Additional requirementsThe details shall be put in slides: $-$Creates the slides which would be required to complete the evaluation process then add details of initial investment, discount rate, net CF$,$ etc. then insert the table to show the computations from the three measures and finally make the decision.