Details: Use Excel to organize your answers. Your table should be organized similar to the example below. The cells labelled 1-65 are cells you must populate based on the inputs provided. Example: Year Variables 0 1 2 3 4 5 6 7 8 9 CT Scanner Initial Purchase Delivery, installation and training Annual maintenance contract Estimated annual scan volume Supply cost per scan1 Technician salary and benefits2 Average charge per scan3 Expected useful life of the scanner 1,750,000 175,000 25,000 2,000 130 84,000 325 19723 2 3 10 11 18 19 25 26 27 33 34 35 42288 12 20 36 52223 6 7 8 13 14 15 21 22 23 29 30 31 32 37 38 39 40 20 16 24 8 years Estimated salvage value at end of period 250,000 65 Annual Revenue Annual expense Net Cash Flow Discount rate You calculate 41 42 43 You calculate 49 50 51 You calculate 57 58 59 426 44 45 46 52 53 54 60 61 62 256 47 48 55 56 63 64 8.00% PV of salvage value You calculate PV of future cash flows You calculate NPV of project You calculate IRR of project You calculate 1. Annual supply inflation rate is estimated to be 6% through the next 8 years 2 Employee wages and benefits are estimated to grow at 4% annually through the next & years Unit 6 Assignment ASSIGNMENT DETAILS Assignment Introduction Assignment Directions Instructions: < > Your hospital is considering the purchase of a CT scanner. You, as the administrator for the Imaging Department, have been asked to conduct a financial analysis on the proposed purchase. Given the information and assumptions below, use Microsoft Excel to conduct a net present value analysis of a capital equipment request. When complete, think of some areas of the analysis where you might be able to make changes to improve the performance of the project. What are your thoughts on how you can positively influence this project? The information below is provided for your use in conducting the analysis on the CT Scanner. All prices and expenses are current as of year 0. Any planned growth will occur in year 1. CT Scanner Initial Purchase price 1,750,000 Delivery, installation, and training 175,000 Annual maintenance contract 25,000 Estimated annual volume 2,000 Supply cost per scan 130 Technician salary and benefits 84,000 Average charge per scan 325 Discount rate 8.00% Expected useful life of the scanner 8 years Estimated salvage value after 8 years 250,000 1. Annual supply inflation rate is estimated to be 6% through the next 8 years 2. Employee wages and benefits are estimated to grow at 4% annually through the next 8 years. 3. Charges for CT scans is estimated to increase 5% annually through the next 8 years