approximately $$200,000$; another $$10,000$ in shipping charges would be required; and it would cost an additional $$30,000$ to install the equipment. The machinery has an economic life of four years, and Shrieves has obtained a special tax ruling which places the equipment in the MACRS three$-$year class. The machinery is expected to have a salvage value of $$25,000$ after four years of use. The new line would generate incremental sales of $1,250$ scans per year for four years at an incremental cost of $$100$ per scan in the first year, excluding depreciation. Each scan would generate revenue of $$200$ in the first year. The price and cost of each scan are expected to increase by $3$ percent per year due to inflation. Further, to handle the new line, the hospital's net operating working capital would have to increase by an amount equal to $12$ percent of sales revenues$*.$ The hospital's tax rate is $20$ percent, and its corporate cost of capital is $10$ percent.

a$.$ Using the information provided, complete the table below. Then determine the NPV$,$ IRR, and MIRR.

b$.$ Perform a sensitivity analysis on the corporate cost of capital, number of scans, and salvage value. Assume that each of these variables can vary from its base case by plus'and minus $15$ and $30$ percent.

c$.$ Perform a scenario analysis using the worst$-,$ most likely, and best$-$case probabilities in the table below:

$33$ In the section entitled "Changes in Net Working Capital" in Chapter $11,$ Gapenski states that expansion projects require additional inventories and accounts receivable which must be financed, just as an increase in fixed assets must be financed. In this situation, the hospital's net working capital would have to increase by an amount equal to $12$ percent of sales. Sales in Year $1$ are estimated at $$250,000,$ so Shrieves must have