General hospital is planning to add a new diagnostic, Accounting Basics

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General hospital is planning to add a new diagnostic

Problem

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 $79,186 and is expected to save the hospital $7,930 each year. The machine has an expected useful life of 13 years.

Required

Calculate the internal rate of return on the diagnostic machine.

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Accounting Basics: General hospital is planning to add a new diagnostic

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Accounting Basics: General hospital is planning to add a new diagnostic

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