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MGH is considering purchasing a new MRI scanner at a purchase price of $300,000. The MRI has a useful life of 10 years, after which

MGH is considering purchasing a new MRI scanner at a purchase price of $300,000. The MRI has a useful life of 10 years, after which the machine has no salvage value. Operating revenue is projected to be $200,000 per year, and operating costs are estimated to be $50,000 per year. The above data is summarized in the following table:

Year 0 1 ... 10
Capital Expenditure 300,000 ...
Operating Revenue 200,000 ... 200,000
Operating Cost 50,000 ... 50,000

MGH is a hospital and is therefore tax-exempt. Assume the risk-adjusted discount rate is 10%. What is the NPV of the project? (Note: Do not include commas in your answer.)

NPV = $_____

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