Provide your detailed answers below every part of each question.
a) A medical facility typically serves an average of 20 patients per hour. Several random observations show that on an average, there are about 14 patients in the facility at any given time. On an average, how much time each patient spends within the facility?
b) A company wants to decide between two leasing options for warehouse for the next 3 years. Option A will require a deposit of $70,000 (refundable after the lease period) and a payment of $60,000 to be paid at the beginning of each month for the next 36 months. Option B has three annual payments of $700,000 each: first today or beginning of year 1, next at the beginning of year 2, and the last payment at the beginning of year 3. Use an interest rate of 10% per year. Find the present value of the total cost of each option and select the better option.