Senior management has asked you, as a department manager, to evaluate 2 potential products for implementation at JCC Hospital. The hospital has provided $10,000 funding for the project and, in compliance with the board of directors direction for a minimum return of 12%, will only accept a project meeting, or exceeding, this requirement. You best friend, the hospital controller, has helped to develop the projected cash flows for both the addition of a new patient service (option A) and a refurbishment of an existing CT scanner:

Year	Option A	Option B
0	($10,000)	($10,000)
1	6,500	3,000
2	3,000	3,000
3	3,000	3,000
4	1,000	3,000

Using this information, you will analyze each option and support a recommendation to your senior management team.

addresses at least 3 capital budget measures (payback period, NPV, IRR, etc.) based on the hurdle rate.

Present what you believe to be the major advantages and potential risks for implementing a new service or refurbishing an existing asset.