Question 9(12 points)

Saved

Bright Clinical Institute of Singapore is a cosmetic dental clinic that offers a range of teeth procedures. Dr 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) Interactiveor b) Massage.The management accountant has indicated the capital budget for the Institute is limited to $295,000 and the required rate of return is 12%.Ignoredepreciation and tax in answering this question.

Tables below: Present value of $1.00 Periods 8% 10% 12% 14% 16% 18% 1 0.926 0.909 0.893 0.877 0.862 0.847 2 0.857 0.826 0.797 0.769 0.743 0.718 0.794 0.751 0.712 0.675 0.641 0.609 4 0.735 0.683 0.636 0.592 0.552 0.516 0.681 0.621 0.567 0.519 0.476 0.437 Present value of an ordinary annuity of $1.00 Periods 6% 8% 10% 12% 14% 15% 1 0.943 0.926 0.909 0.893 0.877 0.870 2 1.833 1.783 1.736 1.690 1.647 1.626 2.673 2.577 2.487 2.402 2.322 2.283 3.465 3.312 3.170 3.037 2.914 2.855 4.212 3.993 3.791 3.605 3.433 3.352