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Please solve in excel. Spring Valley hospital’s board of directors has approved of purchasing of a...

Please solve in excel.

Spring Valley hospital’s board of directors has approved of purchasing of a CT scanner with a capital investment of $300,000. The estimated life of the CT scanner is 10 and during that period the estimated after-tax cash flows (EATCF) are given below. The investments required rate of return is 15%.

Year 0 1 2 3 4 5 6 7 8 9 10

EATCF ($1,000)

-$300 $50 $55 $60 $60 $65 $65 $70 $70 $75 $75

Evaluate this investment, in terms of:

a) Average rate of Return

b) Net Present Value

c) Profitability index

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