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Answer the following compounding/discounting questions assuming year-end cash flows. St. Elsewhere Hospital purchased a DaVinci Robotic System for $2.5 million dollars, using a 6-year loan
Answer the following compounding/discounting questions assuming year-end cash flows. St. Elsewhere Hospital purchased a DaVinci Robotic System for $2.5 million dollars, using a 6-year loan at 3.5% interest. Provide how you arrived at your answer. a) What will be the annual payment for the machine? b. The price of the DaVinci Robotic System ($2.5 million) is rising at a fixed rate of 2.75% each year. How much would it cost to replace the DaVinci machine 5 years from now
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