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Health Care Systems of the South is about to buy an expensive piece of diagnostic equipment. The ...

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Health Care Systems of the South is about to buy an expensive piece of diagnostic equipment. The ...

Health Care Systems of the South is about to buy an expensive piece of diagnostic equipment. The company estimates that it will generate uniform revenues of $500,000 for each of the next eight years. What is the present value of this stream of earnings, at an interest rate of 6%? What is the net present value if the machine lasts only six years, not eight? If the equipment cost $2,750,000, should the company purchase it?

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Operations Management

Edition: 10^th

Authors: Heizer, Render

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retownes Author

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6 years ago

Thanks

Marcie D

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

mikeh209

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Thanks for your help!!

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