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Paisley Medical Center recently decided to expand its cancer and radiosurgery services by purchasing a gamma knife. The gamma knife is expensive an hospital CFO

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Paisley Medical Center recently decided to expand its cancer and radiosurgery services by purchasing a gamma knife. The gamma knife is expensive an hospital CFO wasn't sure it enough demand existed in the surrounding Counties to support the project from a business perspective. After consulting with Burgeons, the head of the cancer center as well as the director of surgical services, he was able to gather the following data Equipment Purchase Price $ 2.500.000 Annual Maintenance Cost (ed) $ 484.02S Projected Procedures Yeur 1 SO Net Revenue per procedure (all years) $ 42,150 Variable costs per Procedure (all years) $ 16,675 Discount Rate/WACC 124 Volume Growth rate Projected volumes are the same each year (flat) No growth Residual value of Gamma Knife after 5 years Zero Hint: There is no depreciation expense associated with this analysis. Al fixed costs are actual cash outfiows. Variable costs are cash outflows, and Ne Revenues reflect cash inflows. What is the contribution margin per procedure of this investment in year 17 (round to whole dollars) Answer: What is the break even point in number of procedures year 1 (round to nearest unit/procedure)? Answer: What is the contribution margin percentage in year 1 (round to whole percentage)? Answer: What are the total cash flows (inflows and outflows) of this investment for all five years (whole dollars, no decimals)? Answer: Using the discount rate (WACC) provided what is the NPV of this project (round to whole dollars)? Answer What is the discounted payback period in years (rounded to 2 decimals)

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