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ospital and must decid hether you want to Le

ospital and must decid hether you want to Le

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
Problem 1PS
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You are the CFO for a major hospital and must decide whether you want to Lease or Buy a new diagnostic scanner. If the cost is $5MM and you can depreciate it (straight line) over 4 years with a zero residual value. If the annual Lease Payments are $1.4MM/year, what are your future annual cash flows ( assuming a 21% tax rate) for the hospital? Make sure you do not add any dollar signs or commas to your answer. Just put in the whole number of dollars
Transcribed Image Text:You are the CFO for a major hospital and must decide whether you want to Lease or Buy a new diagnostic scanner. If the cost is $5MM and you can depreciate it (straight line) over 4 years with a zero residual value. If the annual Lease Payments are $1.4MM/year, what are your future annual cash flows ( assuming a 21% tax rate) for the hospital? Make sure you do not add any dollar signs or commas to your answer. Just put in the whole number of dollars
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