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b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the DaVinci Robotic System (use 6% as the discount rate)? 3 4 FV N FV PMT |1 PMT Present Value:

b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the DaVinci Robotic System (use 6% as the discount rate)? 3 4 FV N FV PMT |1 PMT Present Value:

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A 1 PROBLEM 2 2 3 5 6 7 8 9 10 11 B 4 a. If the above DaVinci Robotic System, which costs $3.75 million, comes with a service charge for an additional amount of $45,000 each year for 5 years. What is the present value of cash outflow for the MRI machine (use 6% as the discount rate)? 12 13 14 C D PV N I FV PMT E Answer the following compounding/discounting questions assuming year-end cash flows. St. Elsewhere Hospital purchased a DaVinci Robotic System for $3.75 million dollars, using a 5-year loan at 4.4% interest (Same as problem 1). F H Present Value: 15 b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the Da Vinci Robotic System (use 6% as the discount rate)?
Transcribed Image Text:A 1 PROBLEM 2 2 3 5 6 7 8 9 10 11 B 4 a. If the above DaVinci Robotic System, which costs $3.75 million, comes with a service charge for an additional amount of $45,000 each year for 5 years. What is the present value of cash outflow for the MRI machine (use 6% as the discount rate)? 12 13 14 C D PV N I FV PMT E Answer the following compounding/discounting questions assuming year-end cash flows. St. Elsewhere Hospital purchased a DaVinci Robotic System for $3.75 million dollars, using a 5-year loan at 4.4% interest (Same as problem 1). F H Present Value: 15 b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the Da Vinci Robotic System (use 6% as the discount rate)?
5 7 8 9 20 21 22 b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the DaVinci Robotic System (use 6% as the discount rate)? 23 24 25 1 FV PMT FV N 1 PMT Present Value:
Transcribed Image Text:5 7 8 9 20 21 22 b. The salvage value of the machine is $750,000 five years from now. What is the present value of the salvage value of the DaVinci Robotic System (use 6% as the discount rate)? 23 24 25 1 FV PMT FV N 1 PMT Present Value:
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