What is the npv of the cat scan machine

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Reference no: EM132920506

Problem 1: A local hospital is considering purchasing a new CAT scan machine. The machine will cost $15,000 and will provide an annual net cash flow of $6,000 for five years. The hospital's cost of capital is 12%. What is the NPV of the CAT scan machine? Round your answer to the nearest $1.

Select one:

a. $21,627
b. $3,405
c. $6,627
d. $17,023
e. $2,023

Reference no: EM132920506

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