*Question updated with life of new MRI machine*

A Hospital has an old MRI machine and an outdated computer system, and they are considering their purchasing options:

Machine cost: $1,200,000

Number of MRIs per year: 14,000

Labor Savings from new machine: $35 per patient

Life of new machine: 5 years

Cost of borrowing (cost of capital): 8%

Computer system:

Cost: $450,000

Savings from new computer system: $65,000 per year

Life of computer system: 9 years

1. WHAT IS THE PAYBACK FOR THIS NEW MRI MACHINE?
2. WHAT IS THE NET PRESENT VALUE OF THIS NEW MRI MACHINE?
3. FROM A PURELY FINANCIAL PERSPECTIVE SHOULD THE HOSPITAL CONSIDER ACQUIRING THE NEW MRI MACHINE?
4. WHAT OTHER CONSIDERATIONS SHOULD THE HOSPITAL LOOK AT IN DECIDING WHETHER OR NOT TO ACQUIRE THE MRI MACHINE.
5. WHAT IS THE PAYBACK FOR THE COMPUTER SYSTEM?
6. WHAT IS THE NET PRESENT VALUE OF THE COMPUTER SYSTEM
7. FROM A PURELY FINANCIAL PERSPECTIVE, SHOULD THE HOSPITAL CONSIDER ACQUIRING THE NEW COMPUTER SYSTEM?
8. THE HOSPITAL HAS THE RESOURCES TO ACQUIRE BOTH OF THESE ITEMS; WHICH (IF ANY ) DO YOU RECOMMEND?
9. IF THE HOSPITAL ONLY HAS THE RESOURCES TO ACQUIRE 1 OF THESE ITEMS WHICH (IF ANY) DO YOU RECOMMEND?