Question

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Answer 1

Q. 1). Solution :- Calculation of present value :-

Laboratory :-

Present value = 70000 * Cumulative present value factors for 15 years at 4 % rate of interest (Using present value table).

= 70000 * 11.118 (approx).

= $ 778260.

EMR Software :-

Present value = 125000 * Cumulative present value factors for 10 years at 6 % rate of interest (Using present value table).

= 125000 * 7.36 (approx).

= $ 920000.

Conclusion :-

Present value of Laboratory	$ 778260.
Present value of EMR Software	$ 920000.