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*you cant have a negative payback.starting point has to be the purchase price* A Hospital is trying to determine the payback period for a piece
*you cant have a negative payback.starting point has to be the purchase price*
A Hospital is trying to determine the payback period for a piece of X-Ray equipment it is purchasing. The assumptions are as follows: Purchase price of equipment $350,000. Useful life of the equipment = 7 years. Revenue the machine will generate per year $9,000. Direct operating costs associated with earning revenue Depreciation expense per year = $50,000. $125,000 Find the machine's expected net income Find the annual cash inflow the machine is expected to generate a. b. Compute the payback period C Step by Step Solution
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