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 Imagings 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 assets 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 Cost

MR System Maintenance (Monthly) $12,500

Yearly Software/Coil Enhancement $50,000

1.5 OEM FRWB MRI System $1,000,000

Utilizing Shared Imagings DI Revolution Solution (60 Month)

Description Cost

Shared Image Monthly FS Charge $28,000.

2) Adjust the calculation on part 1 by suppose the inflation rate over the 60 months is fixed at 1.65%.