Bright Clinical Institute of Singapore is a cosmetic dental clinic that offers a range of teeth procedures. Dr Magic from the Institute is looking at purchasing a new hitech dental chair for patience to lie on during their treatment. The institute has narrowed down its search to the following chairs a) Interactive or b) Massage The management accountant has indicated the capital budget for the Institute is limited to $295,000 and the required rate of return is 12%. Ignore depreciation and tax in answering this question Interactive Year 1 2 $ 100,000 100,000 100,000 100,000 100,000 Massage s 80,000 100,000 110,000 170,000 180.000 3 4 S Additional Information: Purchase price: Interactive $300,000, Massage $290,000, Delivery fee for the Massage $40,000, The Interactive will require a yearly maintenance of $2,000 over its life span The Massage requires an upholstery overhaul of $2,500 in the 3rd year If the center proceeds with the capital purchase of the Massage they are expecting to make one employee redundant. The wages of this staff member equates to $3,000 per year . You are required to answer all questions. Where necessary round off to two decimal places, do not use formulas to calculate the return rates. All workings must be shown. Tables below: Present value of $1.00 Periods 8% 10% 1 0.926 0.909 2 0.857 0.826 3 0.794 0.751 4 0.735 0.683 5 0.681 0.621 12% 0.893 0.797 0.712 0.636 0.567 149 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 18% 0.847 0.718 0.609 0.516 0.437 Present value of an ordinary annuity of $1.00 12% 0.893 Periods 696 1 0.943 2 1.833 3 2.673 4 3.465 5 4.212 8% 0.926 1.783 2.577 3.312 3.093 1096 0.909 1.736 2.487 3.170 3.791 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 1596 0.870 1.626 20283 2.855 3.352 b. Calculate the Net Present Value (NPV) for each item. (6 points) Please use as much of the table below as you need, you can also delete or add rows and columns as needed. (Click the cursor inside a cell to see the table row and column options appear) c. Calculate the Accounting rate of Retum for the Interactive (2 points) (Ctrl)