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Exercise 2 6 . 1 3 ( Static ) Net Present Value Computations ( LO 2 6 - 2 , LO 2 6 - 3
Exercise Static Net Present Value Computations LO LO
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The radiology department at St Josephs Hospital, a notforprofit, is considering purchasing a magnetic resonance imaging MRI machine. The cost to purchase and install an MRI is approximately $ Assume St Josephs would like a minimum percent return and that the economic life of the MRI is expected to be years, with no salvage value. Assume that if the MRI is installed, the net cash flows are expected to increase by $ per year. Use Exhibit for present value factors
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