Reference no: EM132526302
The James Bond Hospital is considering 2 investments:
a) new X-Ray machine....cost: $1,500,000 estimated savings $2 per X-Ray currently doing 150,000 X-Rays per year life of new machine 6 years old X-Ray machine can be sold to McDonalds to keep fries warm for $30,000
b) new MRI machine cost: $3,000,000 estimated savings $50 per MRI procedure; currently doing 15000 per year life of new MRI machine 5 years old MRI machine can be sold to Spectre Hospital for $90,000.
- James Bond Hospital can borrow at 6%.
REQUIRED:
Question 1: What is the payback for the X-Ray machine?
Question 2: What is the payback for the MRI machine?
Question 3: From a financial perspective (net present value) , should James Bond Hospital buy the new X-Ray machine? why or why not
Question 4: From a financial perspective(net present value) should James Bond Hospital buy the new MRI machine? why or why not
Question 5: The State Hospital Board has decreed that James Bond Hospital can only acquire at most 1 new machine this year. Which one (or none) should James Bond Acquire? defend your position