Which device should the hospital choose the after-tax

Reference no: EM13224818

A hospital is considering to purchase one of two different medical devices to perform a specific task. Both devices will perform an accurate analysis. Device A costs $170,000 initially, whereas device B (the deluxe model) costs $180,000. It has been estimated that the cost of maintenance will be $7,800 for device A and $4,500 for device B in the first year. Management expects these costs to increase 15% per year. The hospital uses a six-year study period, and its effective income tax rate is 50%. Both devices qualify as five-year MACRS (GDS) property. Which device should the hospital choose if the after-tax, market-based MARR is 8% per year.

Reference no: EM13224818

Questions Cloud

How the dentists willing to provide dental services : The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..

How do technological changes affect the relative bargaining : How do technological changes affect the relative bargaining power of the parties?

Explain mechanism of friedel-crafts acylatoin of anisole : Write electron pushing mechanism of Friedel-crafts acylatoin of anisole with acetic anhydride as acylating reagent and aluminum chloride and CH2Cl2

In what ways are the strategic management of business : In what ways are the strategic management of business and military strategy alike? In what ways are they different?

Which device should the hospital choose the after-tax : A hospital is considering to purchase one of two different medical devices to perform a specific task. Both devices will perform an accurate analysis. Device A costs $170,000 initially, whereas device B (the deluxe model) costs $180,000.

What zara would need to know : What Zara would need to know is whether or not there has been a valid contract made with anyone else whom she made the sale of her 'Burmese' kittens to. If there is an agreement, it will only be seen generally if there is clear, unequivocal offer ..

State energy of two photons corresponding to a wavelength : How does the energy of two photons corresponding to a wavelength of 451 nm (blue light) compare with the energy of three photons corresponding to a wavelength of 704 nm (red light)?

How is a mission statement of a for-profit organization : How is a mission statement of a for-profit organization different than that of a nonprofit mission statement? Give 3 examples of each by doing an Internet Search. Critique each statement it detail. Rewrite at least one of the statements and explai..

Define how many moles of naoh : The NaOH catalyst solution is prepared by dissolving 0.4 g of NaOH in 4.0 mL of water then adding 3.0 mL of 95% ethanol. how many moles of NaOH, mL of water and ml of ethanol in 3 mL?

User Account

All Pages