Question: please help me do my first homework Ivanhoe Clinic is considering imvesting in new heart-monitoring equipment It has two options. Option A would have an

please help me do my first homework
please help me do my first homework Ivanhoe Clinic is considering imvesting
in new heart-monitoring equipment It has two options. Option A would have
an initial lower cost but would require a significant expenditure for rebuilding
after 4 years. Option B would require no rebuilding expenditure, but its

Ivanhoe Clinic is considering imvesting in new heart-monitoring equipment It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding expenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher quality, it is expected to have a salvage value at the end of its useful life. The following estimates were made of the cash flows. The company's cost of capital is 7%. Clickheretoview the factoriable (a) Compute the (1) net present value. (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve for internal rate of return, experiment with alternative discount rates to arrive at a net present value of zero) (if the net present value is negative, use either a negative sign precedins the number e.45 or parentheses eg (45). Round answers for present value and IRR to 0 decimal ploces, es. 125 and round profitability index to 2 decimal places es. 12.50. for calculation purposes use 5 decimal ploces as displayed in the factor table provided) MARII 1 Future Value of 1 TABIE 2 Fufure Value of an Annuity of 1 TABIE 3 Present Value of 1 TABLE 4 Present Value of an Annulty of 1 Compute the (1) net present value, (2) profitability index, and (3) internal rate of refurn for each option. (Hfint To solve for intermal rate of return, experiment with alternative discount rates to arrive at a net present value of nero) of the net grisent welie is negotive, use elther a negotive sign preceding the number es 45 or porentheses eg 145 . Rixnd anowers for gresent vatue and IRR to 0. decimal places, 2g.125 and round profitability index to 2 decimal ploces eg. 12 .50 For calculation purposes, use 5 decinal piscess as disployed in the foctor toble provided.)

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