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2 and 4 aHospital has been considering the purchase of a new x-ray machine. The existing machine or three more years and will have a

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2 and 4 aHospital has been considering the purchase of a new x-ray machine. The existing machine or three more years and will have a zero disposal price. If the machine is disposed now s operable f ilay pe sold for $170,000. The new machine will cost $700.000 and an addiftional cash investment Working capital of $115,000 will be required. The new machine will reduce the average amount of to take the x-rays and will allow an additional amount of business to be done at the nvestment is expected to net $150,000in additional cash inflows during the year of in w ime required acouisiton and $180,000 each aditional year of use. The new machine has a three-year life, and zero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem.The working capital investment will not be recovered at the end of the asset's life What is the net present value of the investment, assuming the required rate of return is 9%? Would he hospital want to purchase the new machine? a. $93,480,yes b. $/(93,480),yes C $(198,980); no $1249 440), no

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