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Your hospital is considering buying personal computers to install in each patients room. The cost of the investment to the hospital will be $1,400,000. It
Your hospital is considering buying personal computers to install in each patients room. The cost of the investment to the hospital will be $1,400,000. It is expected that these PCs will reduce nursing costs by $200,000 per year for the next seven years. If your discount rate is 10 percent,
a) What is the Net Present Value of the investment?
b) What is the profitability index of this investment?
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