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Marshall Healthcare System, a nontaxpaying entity, is planning to purchase imaging equipment, including an MRI and ultrasonogram equipment, for its new imaging center. The equipment

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Marshall Healthcare System, a nontaxpaying entity, is planning to purchase imaging equipment, including an MRI and ultrasonogram equipment, for its new imaging center. The equipment will generate $3,000,000 per year in revenues for the next five years. The expected operating expenses, excluding depreciation, will increase expenses by imaging equipment is $5, 500,000, which will be depreciated on a straight-line basis to its salvage value. The salvage value at five is $800,000. The cost of capital for this project is 12 percent. Compute the NPV and IRR to determine the financial feasibility of this project. Compute the NPV and IRR to determine the financial feasibility of this project if this were a taxpaying entity with a tax rate of 40 percent

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