Accounting Homework Help

The county hospital is planning to purchase a new piece of medical equipment with the list price 3,000,000 the

medical equipment with a list price 3,000,000, the medical equipment supplier has been experiencing low sales volume due to the recession and is currently offering special pricing to boost sales, the medical equipment supplier provide county hospital with the following two alternative offers Offer 1 , county can purchase equipment at 10 % discount, Offer 2 county can purchase the medical at 5 % discount with two year no costing contract and no cost financing. Assume the county has enough cash available to take advantage of either offer wand will not need to borrow money to complete the purchase. Which offer should county hospital take if its risk adjusted opportunity cost of equal the capital of 1 %. Which offer should the county hospital take if it is risk adjusted opportunity cost of capital is 1 %.