American Healthcare is evaluating a new patient care charting system. The system requires an initial investment of $$1,024,000$ and will generate after$-$tax cash inflows of $$150,000$ per year for $8$ years. For each of the costs of capital listed, $(1)$ calculate the net present value $($NPV$),(2)$ indicate whether to accept. Calculate NPV if the cost of capital is $10\%,$ if the cost of capital is $6\%,$ and cost of capital is $3\%.$ Again indicate when to accept the project.

American Healthcare is evaluating a new patient care charting system. The system requires an initial investment of $$1,024,000$ and will generate after$-$tax cash inflows of $$150,000$ per year for $8$ years. For each of the costs of capital listed, $(1)$ calculate the net present value $($NPV$),(2)$ indicate whether to accept. Calculate NPV if the cost of capital is $10\%,$ if the cost of capital is $6\%,$ and cost of capital is $3\%.$ Again indicate when to accept the project.

NPV is $$-223,761$ at $10\%,$ NPV is $$-92,531$ at $6\%,$ NPV is $$28,954$ at $3\%.$ This project can only be undertaken at a cost of capital of $3\%.$

NPV is $$223,761$ at $10\%,$ NPV is $$92,531$ at $6\%,$ NPV is $$-28,954$ at $3\%.$ This project can only be undertaken at a cost of capital of $3\%.$

NPV is $$223,761$ at $10\%,$ NPV is $$72,531$ at $6\%,$ NPV is $$18,954$ at $3\%.$ This project can only be undertaken at a cost of capital of $6\%.$

either A or B

both A and B

Question at position $45$

$45$