General Hospital is planning to add a new diagnostic machine which should improve its quality of certain blood tests.
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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 $67,195and is expected to save the hospital $8,630each year. The machine has an expected useful life of14years.
IRR is the rate of interest at which NPV = 0i.e., Present value of Out flow = Present value of inflows=> Present value of Inflows = $67,195=> IRR=9% using excel formula [=irr (A1-A15),…
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