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Option A: Building a New Wing One - Time Costs: Land & site preparation: $ 1 0 million ( Year 0 ) Construction: $ 1

Option A: Building a New Wing
One-Time Costs:
Land & site preparation: $10 million (Year 0)
Construction: $100 million ($50 million in Year 0 and $50 million in Year 1)
Medical equipment: $25 million (Year 0)
Licensing and consulting: $15 million (spread across Years 0 and 1)
Initial marketing campaign: $5 million (Year 2)
Annual Values:
Operations & staff: $11 million/year (Year 2 onwards)
Maintenance: $2.5 million/year (Year 2 onwards)
Technology updates: $1.5 million/year (Year 4 onwards)
Overhauls:
Equipment repairs: $18 million (Year 10)
Facility upgrades: $25 million (Year 15)
Revenue:
From Year 3 to 10 : Starting at $60 million and increasing by $5 million annually.
From Year 11 onward: Stabilizing at $100 million annually.
Salvage Value of existing equipment: $25 million (Year 20)
Option B: Upgrading Existing Infrastructure
One-Time Costs:
Renovations: $35 million (Year 0)
Medical equipment: $20 million (Year 0)
Licensing & consulting: $5 million (Year 0)
Initial marketing campaign: $2 million (Year 1)
Annual Values:
Operations & additional staff: $7 million/year (Year 2 onwards)
Maintenance: $2 million/year (Year 2 onwards)
Technology updates: $1.2 million/year (Year 3 onwards)
Overhauls:
Equipment repairs: $13 million (Year 10)
Facility upgrades: $20 million (Year 15)
Revenue:
From Year 2 to 9: Starting at $18 million and increasing by $5 million annually.
From Year 10 onward: Stabilizing at $58 million annually.
Salvage Value: $15 million (Year 20) Using the data above please make an chart using the for the Rate of Return. Using 25.21% for A and 28.32% for B as the IRR.
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