QUESTION 4 (6 marks) A rural county is considering establishing a medical transport unit that would use helicopters to fly emergency medical cases to hospitals. The county has two sources to purchase helicopters, used ones and new ones. The used helicopters will cost $1 million and last three years. Additional used helicopters can be purchased in future years at the same price. The new helicopters will cost $3million and last ten years. Both used and new helicopters will produce net benefit of $800,000 at the end of each year. The helicopters are purchased in year 0 and the relevant discount rate is 7 percent (round to whole number where applicable). 3) Find the present value of the new and used helicopters. b) Calculate and compare the equivalent annuity values for both choices. Which type of helicopters should the county purchase