Platteville Eye Clinic is considering investing in new optical scanning equipment.

It has two plans: Plan A would have an initial lower cost but would require a significant expenditure for rebuilding after 3 years. Plan B would require no rebuilding expenditure, but its maintenance costs would be higher. Since the plan B machine is of initial higher quality, it is expected to have a salvage value at the end of its useful life.

The following estimates were made of the cash flows. The companys cost of capital is 11%.

	Plan A	Plan B
Initial Cost	95,000	160,000
Annual cash inflows	56,000	60,000
Annual cash outflows	26,000	23,000
Cost to rebuild (end of year 3)	45,000	0
Salvage Value	0	16,000
Estimated useful life	6 years	6 years

For each plan, compute the

1. net present value

2. profitability index

3. internal rate of return

4. Cash Payback Period

5. Average Rate of Return