Question
Scotia Family Health Team is investigating purchasing an ultrasound machine for use in its patient clinic. The machine would cost $87,700, including invoice cost, freight,
Scotia Family Health Team is investigating purchasing an ultrasound machine for use in its patient clinic. The machine would cost $87,700, including invoice cost, freight, and the training of employees to operate it. Scotia has estimated that the new machine would increase the companys cash flows, net of expenses, by $15,000 per year. The machine would have a fifteen-year useful life with no expected salvage value. (Ignore income taxes.) |
(Hint: Use Microsoft Excel to calculate the discount factor(s).) |
Required: |
1. | Compute the machines IRR. (Do not round intermediate calculations and round your final answer to nearest whole number.) | ||||||
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