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Question #2 (25 points) The MHA Medical Center is planning to purchase MRI and CT for its new imaging center. The MRI and CT is

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Question #2 (25 points) The MHA Medical Center is planning to purchase MRI and CT for its new imaging center. The MRI and CT is expected to generate $3,000,000 per year in revenues for the next five years. The MRI and CT will incur operating expenses, excluding depreciation, of $1,200,000 per year for the next five years. The initial capital investment outlay for the equipment is $5,500,000, which will be depreciated on a straight- line basis to its salvage value of $800,000 at year five. The cost of capital for this project is 12%. 1) Compute the NPV. Use attached excel file to calculate the NPV; and copy and paste the screenshot in the box below. 2) Compute the Internal Rate of Return (IRR). Use the excel spread sheet uploaded in the exam folder. Screen capture your calculation and attached the image below or upload the excel file along with your completed exam file to the exam submission folder

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