Required information The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary-level clinics. X-Ray Systems First cost, $ Del Medical -198,000 Siemens -172,000 Annual operating cost, $/year -179,000 -183,000 Overhaul in year 3, $ -26,000 Overhaul in year 4, $ Salvage value, $ -140,000 50,000 10,000 Expected life, years 6 t 5% per year, select the more economical system. Solve using tabulated factors. The present worth of Del Medical is $- 1245232, and the present worth of Siemens is $- 1176664.8 The more economical system is Siemens
Required information The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical X-ray system alternatives to be located at secondary-level clinics. X-Ray Systems First cost, $ Del Medical -198,000 Siemens -172,000 Annual operating cost, $/year -179,000 -183,000 Overhaul in year 3, $ -26,000 Overhaul in year 4, $ Salvage value, $ -140,000 50,000 10,000 Expected life, years 6 t 5% per year, select the more economical system. Solve using tabulated factors. The present worth of Del Medical is $- 1245232, and the present worth of Siemens is $- 1176664.8 The more economical system is Siemens
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
Problem 4RE
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![Required information
The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian
Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical
X-ray system alternatives to be located at secondary-level clinics.
X-Ray Systems
First cost, $
Del Medical
-198,000
Siemens
-172,000
Annual operating cost, $/year -179,000
-183,000
Overhaul in year 3, $
-26,000
Overhaul in year 4, $
Salvage value, $
-140,000
50,000
10,000
Expected life, years
6
t 5% per year, select the more economical system. Solve using tabulated factors.
The present worth of Del Medical is $- 1245232, and the present worth of Siemens is $- 1176664.8
The more economical system is Siemens](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2a045b4e-156a-4189-9342-87ed008e99a0%2F0fa21cc4-f9ed-43b8-ad98-8267474163dc%2Fz12dvfg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
The Bureau of Indian Affairs provides various services to American Indians and Alaska Natives. The Director of Indian
Health Services is working with chief physicians at some of the 230 clinics nationwide to select the better of two medical
X-ray system alternatives to be located at secondary-level clinics.
X-Ray Systems
First cost, $
Del Medical
-198,000
Siemens
-172,000
Annual operating cost, $/year -179,000
-183,000
Overhaul in year 3, $
-26,000
Overhaul in year 4, $
Salvage value, $
-140,000
50,000
10,000
Expected life, years
6
t 5% per year, select the more economical system. Solve using tabulated factors.
The present worth of Del Medical is $- 1245232, and the present worth of Siemens is $- 1176664.8
The more economical system is Siemens
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