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Jamaica Hospital (not subject to income taxes) is considering replacing its current MRI machine with a better one. The cost of the new MRI machine
Jamaica Hospital (not subject to income taxes) is considering replacing its current MRI machine with a better one. The cost of the new MRI machine will be $300,000 and it will have a useful life of 5 years. Using a hurdle rate of 10%, Jamaica Hospital calculates a net present value for the new MRI machine of $3,280. Working backwards, how much is the annual uniform cash income from patients who use the new MRI machine? A. $60,000 B. $80,000 C. $100,000 D. $120,000
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