Instructions Your hospital is considering the purchase of a CT scanner You, as the administrator for the Imaging Department, have been asked to conduct a financial analysis on the proposed purchase Given the information and assumptions below, use Microsoft Excel to conduct a net present value analysis of a capital equipment request When complete, think of some areas of the analysis where you might be able to make changes to improve the performance of the project What are your thoughts on how you can positively influence this project The information below is provided for your use in conducting the analysis on the CT Scanner All prices and expenses are current as of year 0 Any planned growth will occur in year 1 CT Scanner Initial Purchase price 1,750,000 Delivery, installation, and training 175,000 Annual maintenance contract 25,000 Estimated annual volume 2,000 Supply cost per scan 1 130 Technician salary and benefits 2 84,000 Average charge per scan 3 325 Discount rate 8 00 Expected useful life of the scanner 8 years Estimated salvage value after 8 years 250,000 1 Annual supply inflation rate is estimated to be 6 through the next 8 years 2 Employee wages and benefits are estimated to grow at 4 annually through the next 8 years 3 Charges for CT scans is estimated to increase 5 annually through the next 8 years Details Use Excel to organize your answers Your table should be organized similar to the example below The cells labelled 1 65 are cells you must populate based on the inputs provided Example

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Instructions: Your hospital is considering the purchase of a CT scanner. You, as the administrator for the Imaging Department, have been asked to conduct a

Instructions:

Your hospital is considering the purchase of a CT scanner. You, as the administrator for the Imaging Department, have been asked to conduct a financial analysis on the proposed purchase. Given the information and assumptions below, use Microsoft Excel to conduct a net present value analysis of a capital equipment request. When complete, think of some areas of the analysis where you might be able to make changes to improve the performance of the project. What are your thoughts on how you can positively influence this project?

The information below is provided for your use in conducting the analysis on the CT Scanner. All prices and expenses are current as of year 0. Any planned growth will occur in year 1.

CT Scanner Initial Purchase price	1,750,000
Delivery, installation, and training	175,000
Annual maintenance contract	25,000
Estimated annual volume	2,000
Supply cost per scan¹	130
Technician salary and benefits²	84,000
Average charge per scan³	325
Discount rate	8.00%
Expected useful life of the scanner	8 years
Estimated salvage value after 8 years	250,000

1. Annual supply inflation rate is estimated to be 6% through the next 8 years

2. Employee wages and benefits are estimated to grow at 4% annually through the next 8 years.

3. Charges for CT scans is estimated to increase 5% annually through the next 8 years

Details:

Use Excel to organize your answers. Your table should be organized similar to the example below. The cells labelled 1-65 are cells you must populate based on the inputs provided.

Example: