Memorial Hospital is considering the acquisition of a new diagnostic scanning machine. The investment required to get the machine operational will be $1, 895,000. The machine will be capable of performing 8, 100 scanning procedures per year, but based on the experience of other hospitals, management estimates that the machine will be used at 80% of its capacity. The hospitals cost of capital is 14%; the machine has an estimated useful of seven years and no salvage value. Required: a. Assuming a constant cash flow every year, calculate the annual net cash flow required from the scanner if the IRR of the investment is to equal 14% b. If the direct cash costs of operating the scanner equal 47% of the annual net cash flow requirement calculated in part a, what price should the hospital charge per scanning procedure in order to achieve an 14% ROI? Memorial Hospital is considering the acquisition of a new diagnostic scanning machine. The investment required to get the machine operational will be $1, 895,000. The machine will be capable of performing 8, 100 scanning procedures per year, but based on the experience of other hospitals, management estimates that the machine will be used at 80% of its capacity. The hospitals cost of capital is 14%; the machine has an estimated useful of seven years and no salvage value. Required: a. Assuming a constant cash flow every year, calculate the annual net cash flow required from the scanner if the IRR of the investment is to equal 14% b. If the direct cash costs of operating the scanner equal 47% of the annual net cash flow requirement calculated in part a, what price should the hospital charge per scanning procedure in order to achieve an 14% ROI