Capital Investment Decision An imaging center is evaluating the expansion project. Alternative investment could be a 64-slice computed tomography (CT) system at $300,000 or an MRI machine at $400,000. The two options are mutually exclusive. Estimated net income are as followed: I I | | 12 Year CT Scan MRI $ $ i 20,000 30,000 2 | $30,000 $35,000 3 | $40,000 $ 45,000 4 | $50,000 $50,000 5 $50,000 $ 55,000 | 6 | | $50,000 $60,000 7 | $50,000 $60,000 8 | $40,000 $ 55,000 9 $30,000 $50,000 10 | 11 $30,000 $40,000 $30,000 $30,000 The salvage value of the CT scan is $50,000 and $80,000 for the MRI machine. The current cost of capital of the imaging center is 6%. Which machine should the center invest? Why