Calculate the operating cash flow

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Reference no: EM13492893

Capital Cash Flow Estimation Exercise

Information to Solve Case

1) Assume Bloomington Indiana Mellencamp Health System, a not-for profit hospital, is evaluating a new MRI.
2) Cost



Purchase price $500,000

Shipping and Install $80,000
3) Expected life
5 years
4) Salvage Value
$250,000
5) Utilization
6000 scans per year
6) Net Revenue
$150 per scan
7) Variable Cost
$75 per scan
8) Fixed cost
$150,000
9) Corporate cost of capital 12%






Calculate the operating cash flow.

Reference no: EM13492893

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