Question $2-$ Draw the cash flow diagram associated to each option: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\mathrm{.}5$ million$/$year $($Year $2$ onwards$)$

Technology updates: $$1\mathrm{.}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\mathrm{.}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 $20)$