A hospital is considering the possibility of two new purchases: new X-ray equipment and new biopsy equipment. Each project would require an investment of P750,000. The expected life for each is 5 years with no expected salvage value. The net cash inflows associated with the two independent projects are as follows: Year X-ray Equipment Biopsy Equipment 1 P 75,000 2 3 4 5 150,000 75,000 300,000 525,000 150,000 600,000 75,000 675,000 What is the net present value of each project assuming a required rate of return of 12%? c. X-ray: P54,312 Biopsy: P512,389 Not Selected Correct answer: b. X-ray: P55,821 a. X-ray: P56.378 P375,000 Biopsy: P514,766 Biopsy: P499.818
A hospital is considering the possibility of two new purchases: new X-ray equipment and new biopsy equipment. Each project would require an investment of P750,000. The expected life for each is 5 years with no expected salvage value. The net cash inflows associated with the two independent projects are as follows: Year X-ray Equipment Biopsy Equipment 1 P 75,000 2 3 4 5 150,000 75,000 300,000 525,000 150,000 600,000 75,000 675,000 What is the net present value of each project assuming a required rate of return of 12%? c. X-ray: P54,312 Biopsy: P512,389 Not Selected Correct answer: b. X-ray: P55,821 a. X-ray: P56.378 P375,000 Biopsy: P514,766 Biopsy: P499.818
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 2CE
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