What of the additional 3% of the amount borrowed as processing charges with regards to the interest rate of 17%

Required:

Assuming that the MRI has a useful life of 7 years and the current charge per patient visit to the MRI unit is GHC 400 but increasing year on year by 10%, advice the management of the hospital whether they should buy the machine or lease it?

Expert Answer

• Anonymous answered this

  Was this answer helpful?

  0

  0

  9 answers

  When company goes for Buying Machine
  EMI every year	469,103
  Maintainance Cost	36,000
  Radiologists Salary	144,000
  Technicians Salary	155,520
  TOTAL YEARLY COST	804,623

  NOTES -

  1.EMI is calculated using PMT foumula in which amount is 600000*3 i.e. 1800000 for three machines plus 40000 of installatation and training. total 1840000.

  Intrest rate = 17%