Question 9 (12 points) Saved Bright Clinical Institute of Singapore is a cosmetic dental clinic that offers a range of teeth procedures. De Magic from the Institute is looking at purchasing a new hitech dental chair for patience to lie on during their treatment. The institute has narrowed down its search to the following chairs a) Interactive of b) Massage The management accountant has indicated the capital budget for the Institute is limited to $195,000 and the required rate of return is 12%. Tenere depreciation and taxi sering this questies Year Interactive $ 1 2 3 100.000 4 3 Massage $ 100,000 80,000 100,000 100,000 110.000 100,000 170,000 100,000 180,000 Additional Information: Purchase price: Interactive 5300,000, Massage $290,000, Delivery fee for the Massage 540,000, The Interactive will require a yearly maintenance of $2,000 over its life span, The Massage requires an upholstery overhaul of $2,500 in the 3rd year, If the center proceeds with the capital purchase of the Massage they are expecting to make one employee redundant. The wages of this staff member equutes to $3,000 per year. You are required to answer all questions. Where necessary round off to two decimal places, do not use formulas to calculate the return rates All workings must be shown. Tables below: Present value of 51.00 Periods 8% 0.926 2 0.857 3 0.794 0.735 5 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 0.877 0.769 0675 0.592 0.519 16% 0.862 0.743 0.641 0.352 0.476 18% 0.847 0.718 0.609 0516 0.437 4 Present value of an ordinary annuity of $1.00 Periods 6% 8% 10% 0.943 0.926 0.909 2 1.833 1.783 1.736 3 2.673 2.577 2.487 4 3.465 3.312 3.170 S 4.212 3.993 3.791 12% 0.893 1690 12.402 3.037 3.605 14% 0877 1.647 2222 2.974 15% 0870 1.626 2.283 2855 3.352 a. Calculate the payback period for each item. (4 points) b. Calculate the Net Present Value (NPV) for each item. (6 points) Please use as much of the table below as you need, you can also delete or add rows and columns as needed (Click the cursor inside a cell to see the table row and column options appear). c. Calculate the Accounting rate of Return for the Interactive. (2 points)