Humana Hospital Corporation installed a new MRI machine at a cost of $$780000$ this year in its medical professional clinic

in Cedar Park. This state$-$of$-$the$-$art system is expected to be used for $5\mathrm{.}00$ years and then sold for $$150000.$ Humana uses

a return requirement of $24\mathrm{.}00\%$ 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.

Problem $06\mathrm{.}007.$b $-$ Annual worth and capital recovery calculations

If the annual operating cost $($ AOC $)$ is expected to be $$115000$ per year, what is the total required to provide for recovery of capital and

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 $