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As the hospital is moving towards advanced diagnostic service as one of its core profitgenerating activities, the Hospital Management is considering investing in the latest,

As the hospital is moving towards advanced diagnostic service as one of its core profitgenerating activities, the Hospital Management is considering investing in the latest, AI-driven MRI machine to enhance its diagnostic capabilities. The hospital estimates that the initial investment for acquiring and installing the machine, including staff training, will amount RM1,000,000. The state-of-the-art MRI machine is expected to generate annual revenue of RM400,000 and result in annual cost savings of RM150,000 compared to the previous generation. The operational costs associated with the MRI machine, including maintenance and consumables, are estimated to be RM120,000 per year.
Calculate the Return on Investment (ROI) for the MRI machine over a one-year period, discuss the feasibility of the investment decision based on your findings, and include your opinion on whether this investment will be a good strategy for the hospital.
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