Instructions: Your hospital is considering the purchase of a CT scanner. You, as the administrator for the Imaging Department, have been asked to conduct a financial analysis on the proposed purchase. Given the information and assumptions below, use Microsoft Excel to conduct a net present value analysis of a capital equipment request. When complete, think of some areas of the analysis where you might be able to make changes to improve the performance of the project. What are your thoughts on how you can positively influence this project? The information below is provided for your use in conducting the analysis on the CT Scanner. All prices and expenses are current as of year 0. Any planned growth will occur in year 1. CT Scanner Initial Purchase price Delivery, installation, and training Annual maintenance contract Estimated annual volume Supply cost per scan¹ Technician salary and benefits² Average charge per scan³ Discount rate 1,750,000 175,000 25,000 2,000 130 84,000 325 8.00% Expected useful life of the scanner 8 years Estimated salvage value after 8 years 250,000 1. Annual supply inflation rate is estimated to be 6% through the next 8 years 2. Employee wages and benefits are estimated to grow at 5% annually through the next 8 years. 3. Charges for CT scans is estimated to increase 5% annually through the next 8 years
Instructions: Your hospital is considering the purchase of a CT scanner. You, as the administrator for the Imaging Department, have been asked to conduct a financial analysis on the proposed purchase. Given the information and assumptions below, use Microsoft Excel to conduct a net present value analysis of a capital equipment request. When complete, think of some areas of the analysis where you might be able to make changes to improve the performance of the project. What are your thoughts on how you can positively influence this project? The information below is provided for your use in conducting the analysis on the CT Scanner. All prices and expenses are current as of year 0. Any planned growth will occur in year 1. CT Scanner Initial Purchase price Delivery, installation, and training Annual maintenance contract Estimated annual volume Supply cost per scan¹ Technician salary and benefits² Average charge per scan³ Discount rate 1,750,000 175,000 25,000 2,000 130 84,000 325 8.00% Expected useful life of the scanner 8 years Estimated salvage value after 8 years 250,000 1. Annual supply inflation rate is estimated to be 6% through the next 8 years 2. Employee wages and benefits are estimated to grow at 5% annually through the next 8 years. 3. Charges for CT scans is estimated to increase 5% annually through the next 8 years
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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Transcribed Image Text:Instructions:
Your hospital is considering the purchase of a CT scanner. You, as the administrator for the Imaging Department, have been asked to conduct a financial analysis on
the proposed purchase. Given the information and assumptions below, use Microsoft Excel to conduct a net present value analysis of a capital equipment request.
When complete, think of some areas of the analysis where you might be able to make changes to improve the performance of the project. What are your thoughts on
how you can positively influence this project?
The information below is provided for your use in conducting the analysis on the CT Scanner. All prices and expenses are current as of year 0. Any planned growth will
occur in year 1.
CT Scanner Initial Purchase price
Delivery, installation, and training
Annual maintenance contract
Estimated annual volume
Supply cost per scan¹
Technician salary and benefits²
Average charge per scan³
Discount rate
4
1,750,000
175,000
25,000
2,000
130
84,000
325 -
8.00%
Expected useful life of the scanner
8 years
Estimated salvage value after 8 years 250,000
1. Annual supply inflation rate is estimated to be 6% through the next 8 years
2. Employee wages and benefits are estimated to grow at 5% annually through the next 8 years.
3. Charges for CT scans is estimated to increase 5% annually through the next 8 years
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