What will be the value of the investment

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Question 1. If a physician deposits $34,000 today into a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of this investment:

a. 3 years from now

b. 6 years from now

c. 9 years from now

d. 12 years from now

Question 2. The Chief Financial Officer of a hospital needs to determine the present value of $150,000 investment received at the end of year 5. What is the present value if the discount rate is:

a. 3%

b. 6%

C. 9%

d. 12%

Question 3. Calexico Hospital plans to invest in a new MRI machine. The cost of the MRI is $1.8 million. The MRI has an economic life of 5 years, and it will be depreciated over a five-year life to a $400,000 salvage value. Additional revenues attributed to the new MRI will be in the amount of $1.5 million per year for 5 years. Additional operating expenses, excluding depreciation expense, will amount to $1 million per year for 5 years. Over the life of the machine, net working capital will increase by $30,000 per year for 5 years.

Reference no: EM132483150

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