Genmed hospital needs to replace its existing mri scanning

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Reference no: EM13382564

Genmed Hospital needs to replace its existing MRI scanning machine. The hospital is considering funding the purchase by means of a lease. The lease would run initially for 2 years at a cost of R450 000 per annum, payable at the of the year. At the end of 2 years, the lease could be renewed for a further 2 years at a cost of R300 000 per annum, payable at the beginning of the year. The current company tax is 28%. The company has a required rate of return of 16%, Calculate the Net Present Value (NPV of the lease)

Reference no: EM13382564

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