please answers the three requirments

Requirements 1. Compute NPV if the required rate of return is 10% 2. Compute the ARR on (a) the initial investment and (b) the "average" investment. Assume straight-line depreciation. 3. Why might the administrator be reluctant to base her decision on the DCF model? Print Done laudacial Y YYYY a min i More Info X The clinic expects the machine to have a useful life of 8 years and a terminal salvage value of $35,000. The machine is delicate. It requires a constant inventory of various supplies and spare parts. When the clinic uses some of these items, it instantly replaces them so it maintains an investment of $9,000 at all times. However, the clinic fully recovers this investment at the end of the useful life of the machine. nuity infio Present Value of Ordinary Annuity of $1 Period 39 5% 6% 12% 10% 14% 16% 18% 7% 20% 25% 9091 8821 .8475 8333 8929 8772 8000 9524 9250 1 9700 9815 9434 9346 1.0135 1.3861 2 1.8504 1.5278 1.4400 1.8080 1.7833 1.8334 1.7355 1.8901 1.6467 1.8052 1.5856 3 2 8280 2.7751 2.7232 2.6730 2.6243 4 37171 3.8200 3.5400 3.4651 3.3872 25771 2.4800 2.4018 23218 2.2450 2.1743 2.1065 1.9520 3.3121 3.1690 3.0373 29137 2.7982 2.8901 2.5887 2 3616 3.9927 3.7908 3.6048 3.4331 3.2743 3.1272 2.9908 2.8893 5 4.5797 4.4518 4.3295 4.2124 4.1002 5.4172 5.2421 5.0757 4.9173 4.7665 7 0.2303 6.0021 5.7864 5.5824 5.3893 3 7.0197 6.7327 8.4632 8.2098 5.9713 4.6229 4.3553 4.1114 3.8887 3.6847 3.4078 3.3255 2.9514 5.2014 4.8684 4.5838 4.2883 4.0386 3.8115 3.6040 3.1611 5.7486 5.3340 4.9878 4.6389 4.3436 4.0778 3.8372 3.3289 8.2460 5.7500 5.3282 4.0484 4.8065 4.3030 4.0310 3.4831 6.7101 6.1446 5.6502 5.2181 4.8332 4.4941 4.1925 3.5705 7.7861 7.4353 7.1078 8.8017 8.5152 10 8.5302 8.1100 7.7217 73001 7.0230 12 90540 9.3851 8.8833 8.3838 7.9427 7.5361 6.8137 6.1944 5.0803 5.1971 4.7932 4.4392 3.7251 15 11.0370 11.1184 10.3797 9.71229.1079 8.5595 7.8081 6.8100 8.1422 5.5755 5.0918 4.6755 3.8593 18 13.7535 12.8593 11.0890 10.8278 10.0591 9.3719 8.2014 7.2407 0.4074 5.8178 5.2732 4.8122 3.9279 20 14.8775 13.5903 12.4822 11.4699 10.5940 9.8181 8.5136 74094 8.8231 5.9288 5.3527 4.8696 3.9539 Present Value of $1 Period 394 4% 5% 6% 7% 8% 10% 12% 14% 16% 18% 20% 25% 1 9700 9815 .9524 .9434 9346 .9259 9091 .8929 8772.8621 .8475 .8333. .8000 9428 N .9246 9070 8900 8734 .8573 .8284 7972 7695 7432 .7182 .8944 .8400 3 9151 8890 .8638 8398 .8163 .7938 7513 7118 .67508407 .6086 5787 .5120 4 .8885 .8548 .8227 7921 7629 7350 .6830 .6355 .5921 5523 5158 .4823 .4096 5 .8826 .8219 -7835 .7473 7130 .6806 .6209 .5674 5194 4781 4371 4019 .3277 8 8375 -7903 -7462 7050 8663 .8302 5645 -5088 4556 4104 3704 -3349 2821 7 .8131 7599 7107 6651 8227 5835 5132 .4523 3998 3538 3139 2791 2097 8 .7894 .7307 .8788 .8274 5820 5403 4665 .4039 3508 3050 2880 2326 1678 9 17664 -7028 .8446 5919 5439 5002 4241 3606 3075 2830 2255 1938 1342 10 7441 .6758 .8139 .5584 5083 4632 3855 3220 2697 2287 1911 1615 1074 12 7014 .6248 5588 4970 4440 3971 3186 2567 2078 1885 1372 1122 0887 15 .8419 5553 4810 4173 3624 3152 2394 1827 1401 1079 0835 0849 0352 18 5874 4938 4155 3503 2950 2502 1799 1300 0948 .0691 0508 0378 0180 20 5537 4584 3769 3118 2584 2145 1488 1037 07280514 0385 0201 0115 Print Done Wilmington Clinic has been under pressure to keep costs down. The onio administrator has been managing various revenue-producing centers to medias contributions to the recovery of the operating costs of the clinio as a whole. The administrator has been considering whether to buy a special purpose CAT scan machine for $275,000. Its unique characteristics would generate additional cash operating income of 552,000 per year for the lines whole (Click the icon to view the additional information) (Click the icon to view the present value factor table) (Click the icon to view the present value annuity factor table) Read the requirements Requirement 1. Compute NPV if the required rate of return is 10%. (Enter the present value factor to four decimal places. "XXX"Round dollar amounts the nearest whole number. Use a minus sign or parentheses for a negative net present value) Present Value Factors Cash Total Present 8 years, 10% Inflow Value Net present value: Present value of annuity of equal annual net cash inflows per year = Present value of lump-sum cash flow from salvage value and supplies inventory Less: Initial investment Net present value