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Purchase price 1,500,000 0 1 2 3 4 Shipping and installation 50,000 Outlay (1,550,000) Useful life 4 Revenue 990,000 1,014,750 1,040,119 1,066,122 Salvage value 90,000

Purchase price 1,500,000 0 1 2 3 4
Shipping and installation 50,000 Outlay (1,550,000)
Useful life 4 Revenue 990,000 1,014,750 1,040,119 1,066,122
Salvage value 90,000 Supply cost 270,000 276,750 283,669 290,760
Volume 6,000 Labor cost 225,000 230,625 236,391 242,300
Revenue per scan 165 Salvage value 90,000
Supply cost per scan 45 (1,550,000) 495,000 507,375 520,059 623,061 287,793
Labor cost 225,000
Inflation 2.50%
Corporate cost of capital 6.25%

What is the expected NPV for the below projects based on scenario analysis?

Revenue Supply cost
Scenarios Volume per scan per scan NPV
Good (35% chance) 6,000 165 45
Great (25% chance) 6,800 200 35

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