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General Hospital is planning to add a new diagnostic machine which should improve its quality of ...

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General Hospital is planning to add a new diagnostic machine which should improve its quality of ...

General Hospital is planning to add a new diagnostic machine which should improve its quality of certain blood tests. The machine under consideration has a cost of $79,189 and is expected to save the hospital $8,000 each year. The machine has an expected useful life of 14 years.

Required:

a.	Calculate the internal rate of return on the diagnostic machine.

b.	If the hospital uses a hurdle rate of 6%, should the diagnostic machine be purchased?

Why or why not?

Textbook

Managerial Accounting

Edition: 4^th

Author: Davis

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cblack14

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pinkkurage Author

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A year ago

Thanks for your help!!

sakoon

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Thank you, thank you, thank you!

megan.xo

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Correct

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