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Suppose you work as a CFO in a hospital. The hospital director is considering buying a CAT- scanning machine for $1.4 million to be used
Suppose you work as a CFO in a hospital. The hospital director is considering buying a CAT- scanning machine for $1.4 million to be used in the hospital and has asked you to check if it would be a worthwhile investment. The machine will generate $500,000 in annual net revenue in each of the first three years before wearing out. Assumin advice would you give to the director? g that the opportunity cost of capital is 10%, what kind of
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