Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in...

Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical professional clinic in Cedar Park. This state-of-the-art system is expected to be used for 5 years and then sold for $125,000. Humana uses a return requirement of 25% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a coop semester on the management staff of Humana Hospital Corporation in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return. In short, you need to estimate first the capitol recovery and then the annual worth.

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Rahul Sunny answered 1 year ago

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