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Mass General wants to purchase a new x-ray machine for $100,000. The discount rate is 12%. The machine has five years of useful life, with
- Mass General wants to purchase a new x-ray machine for $100,000. The discount rate is 12%. The machine has five years of useful life, with no salvage value. The free cash flows are:
| Year 0 |
|
| Year 1 | $14,000 |
| Year 2 | $20,000 |
| Year 3 | $35,000 |
| Year 4 | $42,000 |
| Year 5 | $51,000 |
What is the Net Present Value?
- $262,000
- $162,000
- $100,000
- $108,987
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
