Calculate the financial impact of buying a mobile C-Arm and accessories that would cost 100,000, would have a 5 year useful life, 10% salvage value, have a profit per procedure of 50.00, and would generate an estimated volume of 200 procedures per year. The bank tells me the discount rate should be 10%

Calculate the financial impact of buying a mobile C-Arm and accessories that would cost 100,000, would have a 5 year useful life, 10% salvage value, have a profit per procedure of 50.00, and would generate an estimated volume of 200 procedures per year. The bank tells me the discount rate should be 10%

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

Problem 1PS

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You believe you have discovered a new medical device. You anticipate it will take additional time to get the device fully operational, run clinical trials, obtain FDA approval, and sell to a buyer for $290,000. Assume a discount rate of 4% compounded annually. What is the value today of discovering the medical device, assuming you sell it for $290,000 in (a) two years, (b) three years, or (c) four years? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
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You are operating an old machine that is expected to produce a cash inflow of $6,000 in each of the next 3 years before it fails. You can replace it now with a new machine that costs $21,000 but is much more efficient and will provide a cash flow of $11,500 a year for 4 years. Calculate the equivalent annual cost of the new machine if the discount rate is 15%. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Answer is complete but not entirely correct. $ (8,697.12) ► Equivalent annual cost of the purchase price
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Please help me. Thankyou.
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