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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

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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: 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

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