The Chicago Hope Hospital purchased a MRI machine for $5 million dollars, using a 6 year loan at 8% interest. a. The above MRI machine
The Chicago Hope Hospital purchased a MRI machine for $5 million dollars, using a 6 year loan at 8% interest.
a. The above MRI machine which costs 5 million comes with a service charge for an additional amount of $20,000 each year for 5 years. What is the present value of cash flows for the MRI machine (use 8% as the discount rate)?
b. The salvage value of the machine is $100,000 five years from now. What is the present value of the salvage value of the MRI?
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Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
