question archive You are evaluating two offers for hospital imaging equipment
You are evaluating two offers for hospital imaging equipment
Subject:FinancePrice: Bought3
You are evaluating two offers for hospital imaging equipment. Perform
an NPV analysis for each offeror. Enter the Total NPV for each offeror and identify the better offer (Offeror A or Offeror B).
The OMB discount rate is .5%.
Offeror A proposes a purchase for $65,000, with required maintenance costs in Year 2 for $2,000 and a salvage value in Year 3 of $4,000.
Offeror B proposes a lease for $22,500 per year for three years.(1 Point)
Offeror A: -$63,039.80, Offeror B: -$67,164.75, Better offer: Offeror A
Offeror A: -$67,164.75, Offeror B: -$63,039.80, Better offer: Offeror B
Offeror A: -$53,039.80, Offeror B: -$65,164.75, Better offer: Offeror B
Offeror A: -$65,039.80, Offeror B: -$59,164.75, Better offer: Offeror A
