The revenue per system is estimated to be 70000 in year 1

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Reference no: EM13619159

Johnson implants is planning a new online patient diagnostics for surgeons while they operate. the new system will cost $450,000 to install in an operating room, $10,000 anually for maintenance, and have an expected life of 10 years. The revenue per system is estimated to be $70,000 in year 1 and to increse $20,000 per year through year 10. Determine if the project is economically justified using PW analysis and a MARR of 10% per year. Draw the cash flow diagram.

Reference no: EM13619159

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