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Which machine should be purchased

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The MHS Chief Financial Officer is considering alternate proposals for the hospital Radiology department. The Director of Radiology has suggested purchasing one of two pieces of equipment. Machine A costs $15,000 and Machine B costs $12,000. Both machines are estimated to reduce radiology operating costs by $5,000 per year.

Which machine should be purchased? Make your payback calculations to provide the answer.

Reference no: EM131596997

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