Compute the net present value of each project


Problem: NPV A clinic is considering the possibility of two new purchases: new MRI equipment and new biopsy equipment. Each project requires an investment of $416,200. The expected life for each is five years with no expected salvage value. The net cash inflows associated with the two independent projects are as follows: Year MRI Equipment Biopsy Equipment 1 $203,000 $52,000 2 111,000 54,000 3 155,000 103,000 4 95,000 206,000 5 52,000 248,000 The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: Compute the net present value of each project, assuming a required rate of 10 percent. If the NPV is negative, enter your answer as a negative value. NPV MRI equipment $fill in the blank 1 Biopsy equipment $fill in the blank 2

 

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Accounting Basics: Compute the net present value of each project
Reference No:- TGS03426589

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