Question: Please give the detailed steps for understanding this problem. 1. The General Hospital is evaluating new office equipment offered by three companies. The interest rate

Please give the detailed steps for understanding this problem.

1. The General Hospital is evaluating new office equipment offered by three companies. The interest rate is 8%. \begin{tabular}{|l|c|c|c|} \hline & Company A & Company B & Company C \\ \hline Cost & $500 & $600 & $700 \\ \hline Annual benefit & 130 & 115 & 100 \\ \hline Endofusefullifesalvagevalue & 0 & 250 & 180 \\ \hline Useful life (yrs) & 5 & 5 & 10 \\ \hline \end{tabular} a) Use an annual cash flow analysis to determine the company from which you should purchase the equipment. b) Determine the incremental rate of return between Company B and Company C

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