The James Bond Hospital is considering 2 investments:

a) new X-Ray machine....cost:$1,500,000 estimated savings $2 per X-Raycurrently doing 150,000 X-Rays per year life of new machine 6 yearsold X-Ray machine can be sold to McDonalds to keep fries warm for $30,000

b) new MRI machinecost:$3,000,000estimated savings $50 per MRI procedure;currently doing 15000 per year life of new MRI machine 5 yearsold MRI machine can be sold to Spectre Hospital for $90,000.

James Bond Hospital can borrow at 6%.

REQUIRED:

a) what is the payback for the X-Ray machine?

b) What is the payback for the MRI machine?

c)From a financial perspective (net present value) , should James Bond Hospital buy the new X-Ray machine?

why or why not

d) from a financial perspective(net present value)should James Bond Hospital buy the new MRI machine?

why or why not

c) The State Hospital Board has decreed that James Bond Hospital can only acquire at most1 new machinethis year.Which one (or none) should James Bond Acquire?defend your position