14%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospital...

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Accounting

image 14%. Assume all cash flows occur at year-end except for initial investment amounts. City Hospital uses straight-line depreciation. Present Value of Annuity of $1 table Future Value of Annuity of $1 table Read the requirements. Requirement 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative n The net present value is b. Payback period (Round your answer to two decimal places.) The number of years for the payback period is c. Internal rate of return (Round the rate to two decimal places, X.XX\%. Do not enter the \% symbol into the input field.) The internal rate of return (IRR) is %. d. Accrual accounting rate of return based on net initial investment (Round interim calculations to the nearest whole dollar. Rou Based on net initial investment, the accrual accounting rate of return (AARR) is %. e. Accrual accounting rate of return based on average investment (Round interim calculations to the nearest whole dollar. Rour Based on average investment, the accrual accounting rate of return (AARR) is %. Requirements 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value b. Payback period c. Internal rate of return d. Accrual accounting rate of return based on net initial investment e. Accrual accounting rate of return based on average investment 2. What other factors should City Hospital consider in deciding whether to purchase the special-purpose eye-testing machine? Requirement 2. What other factors should City Hospital consider in deciding whether to purchase the special-purpose eye-testing machine? A. Quantitative financial aspects

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