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A hospital wants to buy a piece of equipment for $100,000. The projected cash flows are $22,000/yr during the equipment's 5 year useful life. What
A hospital wants to buy a piece of equipment for $100,000. The projected cash flows are $22,000/yr during the equipment's 5 year useful life. What is the net present value if you assume the cost of capital is 10%? What is the internal rate of return? Do you recommend acquiring the equipment?
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