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Dublin Methodist Hospital is considering the purchase of a new rapid diagnostic machine. The system will cost $400,000 and will be depreciated straight-line to zero
- Dublin Methodist Hospital is considering the purchase of a new rapid diagnostic machine. The system will cost $400,000 and will be depreciated straight-line to zero over its five-year life. It will be worth $50,000 at the end of that time. The hospital will save $130,000 per year in laboratory costs and will also be able to reduce their inventory of lab supplies by $50,000 upon purchasing the new machine. If the tax rate is 35%, what is the IRR for this project?
- 17.25%
- 19.93%
- 22.59%
- 25.31%
- 27.25%
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