USING EXCEL

You are considering buying new PACS hardware/software that will require an initial outlay of $54,200.The system has an expected useful life of 5 years and will generate free cash flows to the hospital as a whole of $20,608 at the end of each year over its 5 year life.In addition, the salvage value of the system is expected to be $13,200 based on current market conditions.Given a required rate of return of 15 percent, determine the following:

a.Payback Period

b.NPV

c.IRR

d.Should this project be accepted?