Biomet Implants is planning new online patient diagnostics for surgeons while they operate. The new system will cost $300,000 to install in an operating room, $5000 annually for maintenance, and have an expected life of 4 years. The revenue per system is estimated to be $80,000 in year 1 and to increase by $10,000 per year through year 4. Determine if the project is economically justified using PW analysis and an MARR of 10% per year. O $-18,470 not justified O $-18,475 not justified O $-18,477 not justified $-18,479 not justified O No correct answer

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Biomet Implants is planning new online patient diagnostics for
surgeons while they operate. The new system will cost $300,000
to install in an operating room, $5000 annually for maintenance,
and have an expected life of 4 years. The revenue per system is
estimated to be $80,000 in year 1 and to increase by $10,000
per year through year 4. Determine if the project is economically
justified using PW analysis and an MARR of 10% per year.
$-18,470 not justified
$-18,475 not justified
$-18,477 not justified
$-18,479 not justified
O No correct answer
Transcribed Image Text:Biomet Implants is planning new online patient diagnostics for surgeons while they operate. The new system will cost $300,000 to install in an operating room, $5000 annually for maintenance, and have an expected life of 4 years. The revenue per system is estimated to be $80,000 in year 1 and to increase by $10,000 per year through year 4. Determine if the project is economically justified using PW analysis and an MARR of 10% per year. $-18,470 not justified $-18,475 not justified $-18,477 not justified $-18,479 not justified O No correct answer
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