Mayberry Hospital is considering a joint venture relationship with your physicians to acquire a full-body computed tomography (CT) scanner. Projected revenues and expenses for the scanner are presented in TABLE 21-15.

The scanner is expected to cost $627,000 and have a useful life of 5 years. Two possible financing plans have been proposed. The first plan would be a limited partnership arrangement. There would be 34 shares: 33 would be sold to investors for $19,000 each (total funds generated would be $627,000) and 1 share would be retained by the hospital for its development effort. In the second financing plan, a $380,000 level-debt service plan with a 5-year maturity and interest at 10% would be arranged. The remainder of the funding would be generated through the sale of 33 limited partnership shares at $7,485 per share ($247,000). Again, the final share would be issued to the hospital for its development efforts. Assuming that a 30% marginal tax rate exists, project cash flow per partnership unit under each financing alternative for each of the 5 years.