Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical professional clinic. This system is expected to be used for 5 years and then sold for $125,000. Humana uses a return requirement of 25% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a coop semester on the management staff of Humana Hospital Corporation in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return. In short, you need to estimate first the capitol recovery and then the annual worth.
Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical professional clinic. This system is expected to be used for 5 years and then sold for $125,000. Humana uses a return requirement of 25% per year for all of its medical diagnostic equipment. As a bioengineering student currently serving a coop semester on the management staff of Humana Hospital Corporation in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return. In short, you need to estimate first the capitol recovery and then the annual worth.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical
professional clinic. This system is expected to be used for 5 years and then sold for $125,000. Humana uses a
return requirement of 25% per year for all of its medical diagnostic equipment. As a bioengineering student
currently serving a coop semester on the management staff of Humana Hospital Corporation in Louisville,
Kentucky, you are asked to determine the minimum revenue required each year to realize the expected
recovery and return. In short, you need to estimate first the capitol recovery and then the annual worth.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fde6ef3dc-9342-4297-9992-db12692697d6%2F7797c439-9d70-4a57-b521-e68be630cf1a%2F10vdoon_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical
professional clinic. This system is expected to be used for 5 years and then sold for $125,000. Humana uses a
return requirement of 25% per year for all of its medical diagnostic equipment. As a bioengineering student
currently serving a coop semester on the management staff of Humana Hospital Corporation in Louisville,
Kentucky, you are asked to determine the minimum revenue required each year to realize the expected
recovery and return. In short, you need to estimate first the capitol recovery and then the annual worth.
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