Southwest Specialty Clinic is considering adding an onsite MRI scanner. Current estimates are that the MRI scanner will cost $1,900,000 to purchase, install and prepare for use. Cash flows expected from operation of the scanner during its estimated five year project life are:

Year	Cash Flow
1	300,000
2	350,000
3	400,000
4	450,000
5	500,000

Southwest expects to be able to sell the MRI scanner for $200,000 at the end of year 5. Southwest's cost of capital (opportunity cost) is 6% compounded monthly. Should Southwest invest in the MRI scanner ?

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