The Vancouver National Hospital (VNH) is a hospital in Vancouver, B.C., Canada was established in the years 1819-1820. The hospital received its charter in 1824. The VNH has been designated by the B.C. government as one of three Level I trauma centres in the province. VNH provides full-service diagnostic imaging to their patients. With a growing number of patients seeking care at their free-standing sites, they saw the need to install a wide-bore (70cm) MRI at one of their outpatient facilities. With limited capital for this project, the hospital considered purchasing a refurbished system directly from the manufacturer or utilizing Shared Imaging's DI Revolution solution over a 60-month period. 1) Using Net Present Value comparative cost analysis, analyze both procurement options to determine which option was the most profitable over the asset's lifespan. The hospital determined the required rate of return for this project was 3.25%. Purchasing a Refurbished System Directly from the Manufacturer Cost (60 Month) Description MR System Maintenance (Monthly) Yearly Software/Coil Enhancement 1.5 OEM Factory Refurbed Wide Bore MRI System Cost $12,500 $50,000 $1,000,000 Utilizing Shared Imaging's DI Revolution Solution (60 Month) Description Shared Image Monthly FS Charge Cost $28,000 2) Adjust the calculation on part 1 by suppose the inflation rate over the 60 months is fixed at 1.65%.