With limited capital for this project, the factory considered purchasing a refurbished system directly from the manufacturer or utilizing shared imaging's DI revolution solution over a 60 month period. Using NPV(Net Present Value) comparative cost analysis, analyze both procurement options to determine which option was the most profitable over the asset's lifespan. The hospital determined the required rate of return for this project was 3,25 %. Purshasing a refurbished system directly from the manufacturer cost (60 month) description MR system maintenance (montly) yearly software/coll enhancement 1.5 OEM factory refurbed wide bore mri system Utilizing shared imaging's DI revolution solution (60 month) description share image monthly FS charge cost 12500$ 50000$ 1000000$ cost 28000$

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
icon
Related questions
Question

4

With limited capital for this project, the factory considered purchasing a refurbished system
directly from the manufacturer or utilizing shared imaging's DI revolution solution over a 60
month period.
Using NPV(Net Present Value) comparative cost analysis, analyze both procurement options to
determine which option was the most profitable over the asset's lifespan. The hospital
determined the required rate of return for this project was 3,25 %.
Purshasing a refurbished system directly from the
manufacturer cost (60 month)
description
MR system maintenance (montly)
yearly software/coil enhancement
1.5 OEM factory refurbed wide bore mri system
Utilizing shared imaging's DI revolution solution (60 month)
description
share image monthly FS charge
cost
12500$
50000$
1000000$
cost
28000$
Transcribed Image Text:With limited capital for this project, the factory considered purchasing a refurbished system directly from the manufacturer or utilizing shared imaging's DI revolution solution over a 60 month period. Using NPV(Net Present Value) comparative cost analysis, analyze both procurement options to determine which option was the most profitable over the asset's lifespan. The hospital determined the required rate of return for this project was 3,25 %. Purshasing a refurbished system directly from the manufacturer cost (60 month) description MR system maintenance (montly) yearly software/coil enhancement 1.5 OEM factory refurbed wide bore mri system Utilizing shared imaging's DI revolution solution (60 month) description share image monthly FS charge cost 12500$ 50000$ 1000000$ cost 28000$
Expert Solution
steps

Step by step

Solved in 3 steps with 5 images

Blurred answer
Knowledge Booster
Cost control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education