You are a hospital administrator and you have a very old CT Scan Machine. The cost of
Fantastic news! We've Found the answer you've been seeking!
Question:
You are a hospital administrator and you have a very old CT Scan Machine. The cost of annual repairs and replacing worn out parts to keep the old machine running is $12,000 per year. The hospital board of directors has asked you whether it makes more financial sense to continue to maintain the old machine or to purchase a new CT scan machine. The new model CT scan machine costs $200,000 and is expected to last for 20 years with a depreciation rate of 5% (note: the depreciation rate includes wear and tear and maintenance). What will you recommend to the board? Justify your recommendation.
Posted Date: