eraluatine is evaluating the equipment, which on 14.7 California Health Center, a for-profit hospital, is chase of new diagnostic equipment. The equipment. $600,000, has an expected life of five years and an estiman salvage value of $200,000 at that time. The equipment s to be used 15 times a day for 250 days a year for cach yeacs project's life. On average, each procedure is expected to $80 in collections, which is net of bad debt losses and contrac allowances, in its first year of use. Thus, net revenues for Yer l estimated at 15 250 $80-$300,000 year of Labor and maintenance costs are expected to be $I during the first year of operation, while utilities will cost $10,000 and cash overhead will increase by $5,000 in Ye