Required information [The following information applies to the questions displayed below.] The radiology department at St. Joseph's Hospital, a not-for-profit, is considering purchasing a magnetic resonance imaging (MRI) machine. The cost to purchase and install an MRI is approximately $2,000,000. Assume St. Joseph's would like a minimum 6 percent return and that the economic life of the MRI is expected to be 10 years, with no salvage value. Assume that if the MRI is installed, the net cash flows are expected to increase by $400,000 per year. Use Exhibit 264 for present value factors. a. Find the NPV of the MRI. (Round your "PV factor" to 3 decimal places.) NPV Present Value of $1 to Be Received Periodically for n Periods Discount Rate Number of Periods (n) EXHIBIT 26-4 Present Value of a $1 Annuity Receivable Each Period for n Periods 1% 112% 5% 6% 8% 10% 12% 15% 20% 1 0.833 2 3 4 0.952 1.859 2.723 3.546 5 6 7 0.990 1.970 2.941 3.902 4.853 5.795 6.728 7.652 8.566 9.471 18.046 21.243 30.108 0.985 1.956 2.912 3.854 4.783 5.697 6.598 7.486 8.361 9.222 17.169 20.030 27.661 0.943 0.926 1.833 1.783 2.673 2.577 3.465 3.312 4.212 3.993 4.917 4.623 5.582 5.206 6.210 5.747 6.802 6.247 7.360 6.710 11.470 9.818 12.550 10.529 14.621 11.717 0.909 0.893 0.870 1.736 1.690 1.626 2.487 2.402 2.283 3.170 3.037 2.855 3.791 3.605 3.352 4.355 4.111 3.784 4.868 4.564 4.160 5.335 4.968 4.487 5.759 5.328 4.772 6.145 5.650 5.0 19 8.514 7.469 6.259 8.985 7.784 6.434 9.677 8.192 6.623 4.329 5.076 5.786 6.463 7.108 7.722 12.462 13.799 16.547 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.870 4.937 4.993 8 9 10 20 24 36