Part 3 Question 4 - Using linear interpolation, calculate the rate of return for each option. Here, your calculation should be implemented using Excel. Plot the results for different interest rate values and identify the rate of return in your plot.

Question 5 - Assuming that the initial equipment can be depreciated over the course of 20 years and using Double Decline Balance Depreciation, calculate the depreciation schedule for the equipment.

Question 6 - Assume a state income tax of 5%. Calculate the after-tax cashflow for each option assuming the depreciation used. Assume as only taxable income the ones described in part 4 Revenue. Use only the depreciation on question 4.

Option A: Building a New Wing 1. 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) 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) 3. Overhauls: Equipment repairs: $18 million (Year 10) Facility upgrades: $25 million (Year 15) 4. 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 1. 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) 2. 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) 3. Overhauls: Equipment repairs: $13 million (Year 10) Facility upgrades: $20 million (Year 15) 4. 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)

Please show equations and label.. Thank you!