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Humana Hospital Corporation installed a new MRI machine at a cost of exist750,000 this year in its medical professional clinic in Cedar Park. This state-of

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Humana Hospital Corporation installed a new MRI machine at a cost of exist750,000 this year in its medical professional clinic in Cedar Park. This state-of the-art system is expected to be used for 5 years and then sold for exist75,000. Humana uses a return requirement of 24% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a coop semester on the management staff of Humana Corporation in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return. Also, you are asked to draw two cash flow diagrams, one showing the MRI purchase and sale cash flow and a second depicting the required capital recovery each year

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