In: Accounting
Type or paste questi
The xyz Hospital is considering 2 investments:
a) new X-Ray machine cost: $1,500,000 estimated savings $2 per
X-Ray currently doing 150,000 X-Rays per year
life of new machine 6 years old X-Ray machine can be sold to
McDonalds to keep frys warm for $30,000
b) new MRI machine cost: $3,000,000 estimated savings $50 per MRI
procedure; currently doing 15000 per year
life of new MRI machine 5 years old MRI machine can be sold to
Spectre Hospital for $91,000.
xyz Hospital can borrow at 7%.
a) what is the payback for the X-Ray machine?
b) What is the payback for the MRI machine?
c) From a financial perspective (net present value) , should xyz
Hospital buy the new X-Ray machine?why or why not
) from a financial perspective(net present value) should xyz
Hospital buy the new MRI machine? why or why not
e) The State Hospital Board has decreed that xyz Hospital can only
acquire at most 1 new machine this year. which one (or none) should
xyz Acquire?
defend your position
on here