Nolan Hospital has decided to acquire diagnostic equipment from Weber Medical Products based on Weber's reputation for quality. Weber has offered Nolan four payment options, as shown in the following table. All payments would be due and paid at the beginning of each year.
Options
Year (dollars in millions)
I II III IV
1 5$ 18
2 5 10
3 5 10
4 5 22
Nolan's cost of funds is 8%. Which payment option should Nolan choose
A. I
B. II
C. III
D. IV
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Elsayed Elsayed Ali Aboelsaoud
Giza
Egypt
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