Chicago Hospital, , a nonprofit organization, estimates that it can save $30,000 a year in cash operating costs for the next 9 years if it buys a special-purpose eye-testing machine at a cost of $150,000 . No terminal disposal value is expected. Chicago Hospital's required rate of return is 12%. Assume all cash flows occur at year-end except for initial investment amounts. Chicago Hospital uses straight-line depreciation.

A. Net present Value

B. Payback Period

C. Internal Rate of return

D. Accrual account rate of return based on net initial investment

E. Accrual accounting rate of return based on average investment

2. What other factors should chicago hospital consider in deciding whether to purchase the special-purpose eye-testing machine?