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Tex-Exs Medical Hospital, a for profit entity, is considering a new ortho center. Related information is given below: Cost of equipment Cost of Land

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Tex-Exs Medical Hospital, a for profit entity, is considering a new ortho center. Related information is given below: Cost of equipment Cost of Land Salvage value of equipment Expected annual revenues Total annual operating expenses Life of equipment in years Cost of capital for the project Applicable tax rate $ 1,500,000 $ 3,500,000 $ 25,000 $ 3,750,000 $ 2,545,000 5 7% 25% Calculate the Net Present Value and IRR of the proposed Center and make your Reccommendation.

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