1-You have been hired as a senior Business Analyst at Broward General Hospital. The Chief Financial Officer whom you report to assigned this a project which she has started. She wants your recommendations, furthermore, she wants to see the following: (10 points)

1a- Payback period

1b- Net Present Value (NPV)

1c- Profitability Index (PI)

1d- Your recommendations (Accept or Reject) and Why?

Sonogram equipment purchase being considered

Cost

$450,000.00

Shipping

$100,000.00

Total cost (Co Flow)

Life

4-Year

Residual Value

$50,000.00

Price $ 100/case

$100.00

Labor Fixed Cost/year

$150,000.00

Supplies

$50.00

Expected inflation

10%

Corporate Discount Rate

15%

Year 1 Cases number of cases (Volume)

6000.00

Please explain verbally in as much detail as possible.

Thank you.