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Big Profit Healthcare (BPH) is a for-profit system that has decided to purchase a new X-ray machine. The cost of the machine is $750,000 with
Big Profit Healthcare (BPH) is a for-profit system that has decided to purchase a new X-ray machine. The cost of the machine is $750,000 with a useful life of 5 years. BPH believes it can do 300 scans per month and that the net revenue will be $90 per scan. The estimated expense per scan is $15. If you assume a discount rate of 5% and a tax rate of 30%, what is the payback period (to 2 decimal places) of the machine?
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