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Evaluating payback, NPy, and IRR in the face of volume and concept capital uncertainty rogressive Hospital is considering the purchase of a new Sidewinder scanner,

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Evaluating payback, NPy, and IRR in the face of volume and concept capital uncertainty rogressive Hospital is considering the purchase of a new "Sidewinder" scanner, which costs $3,000,000.The new scanner provides a 360-degree internal feature vicw of the organ or body part being scanned, with no radiation exposure. The medical staff estimates that the technology will last five years before it will need be replaced with newer technology. The equipment will have no salvage value. Scan volume has been estimated as follows: Year 1 10,000 Year 2 12,000 Year 3 15,000 Year 4 15,000 Year 5 15,000 Average billing price is estimated to be si00 per scan. variable The scanner will have fixed operating costs of $350,000 per year and operating costs of $10 per scan

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