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Humana Hospital Corporation installed a new MRI machine at a cost of $810000 this year in its medical professional clinic in Cedar Park. This state-of-the-art
Humana Hospital Corporation installed a new MRI machine at a cost of $810000 this year in its medical professional clinic in Cedar Park. This state-of-the-art system is expected to be used for 6.00 years and then sold for $110000 Humana uses a return requirement of 26.00% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a Co-op 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. If the annual operating cost (AOC) is expected to be $110000 per year, what is the total required to provide for recovery of capital anc the annual expenses at the specified rate of return? The total required to provide for recovery of capital and the annual expenses at the specified rate of return is determined to be $
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