7. 4.11 The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary-level clinics. At 5% per year, select the more economical system. Solve using

(a) tabulated factors, and

(b) singlecell spreadsheet functions, as instructed.

Table Summary: Table divided into 3 columns with the headings marked from left to right as: X-ray System;

Del Medical; and Siemens.

X-ray System Del Medical Siemens First cost, $ −250, 000 −224, 000 Annual operating cost, $/year −231, 000 −235, 000 Overhaul in year 3, $ — −26, 000 Overhaul in year 4, $ −140, 000 —

Salvage value, $ 50,000 10,000 Expected life, years 6 6 Answer