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Newborn Hospital is considering the possibility of two new purchases, a new EKG/ECG machine or a new anesthesia machine. Each project would require an investment
Newborn Hospital is considering the possibility of two new purchases, a new EKG/ECG machine or a new anesthesia machine. Each project would require an investment of $750,000. The expected life for each is five years with no expected salvage value. The net cash flows associated with the two independent projects are as follows. EKG/ECG Machine 1 2 3 4 5 . The required rate of return is 12 percent. The net present value for anesthesia machine is. A B $514,766 $750,000 C) $1,264,766 Year $2,000,000 $375,000 150,000 300,000 150,000 75,000 Anesthesia Machine $75,000 75,000 525,000 600,000 675,000
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