t fo B C D E F G H 1 PROBLEM 2 A 2 3 4 Answer the following compounding/discounting questions assuming year-end cash flows. St. Elsewhere Hospital purchased a DaVinci Robotic System for $3.75 million dollars, using a 5-year loan at 4.4% interest. (Same as problem 1). a. If the above DaVinci Robotic System, which costs $3.75 million, comes with a service charge for an additional amount of $45,000 each year for 5 years. What is the present value of cash outflow for the MRI machine (use 6% as the discount rate)? 5 6 7 PV 8 N 9 I 10 11 FV PMT 12 13 14 Present Value: b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the DaVinci Robotic System 15 (use 6% as the discount rate)? 16 17 FV 18 N 19 I 20 PMT 21 22 32 Present Value: