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Dr. Smith and Dr. Brown's physician practice is considering two capital expenditures: $70,000 for a laboratory and $125,000 for electronic health record (EHR) software. Calculating
Dr. Smith and Dr. Brown's physician practice is considering two capital expenditures: $70,000 for a laboratory and $125,000 for electronic health record (EHR) software. Calculating the present value is important for effective budgeting and evaluating the long-term financial impact of these investments. The laboratory investment will be compounded annually at a rate of 4% for 15 years, whereas the EHR software investment will be compounded annually at a rate of 6% for 10 years. Using this information, calculate the present value of each of these investments and complete the table below
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