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Author Question: General Hospital is planning to add a new diagnostic machine which should improve its quality of ... (Read 35 times)

caca31

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on: Feb 5, 2023
General Hospital is planning to add a new diagnostic machine which should improve its quality of certain blood tests. The machine under consideration has a cost of $79,189 and is expected to save the hospital $8,000 each year. The machine has an expected useful life of 14 years.

Required:

a.Calculate the internal rate of return on the diagnostic machine.
b.If the hospital uses a hurdle rate of 6%, should the diagnostic machine be purchased?
Why or why not?
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Marked as best answer by caca31 on Feb 5, 2023

BryanAultm

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Reply #1 on: Feb 5, 2023
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caca31

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Reply 2 on: Feb 5, 2023
Great answer, keep it coming :)

ashely1112

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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