Solution 1 A B Future Present a b c d Value Value Factor 24 000 24 000 24 000 24 000 FVF8 2 A B 2 FVF8 4 FVF8 6 FVF8 8 Present Future Value Value
Solution A B Future Present a b c d Value Value Factor FVF A B FVF FVF
Solution A B Future Present a b c d Value Value Factor FVF
Present a b c d Value Value Factor FVF A B FVF FVF FVF Present Future Value Value
Solution A B Future Present a b c d Value Value
Factor FVF A B FVF FVF FVF Present Future Value Value
Solution A B Future Present a b c
Solution A B Future
(Solution) 1 A B Future Present a) b) c) d) Value Value Factor $24,000 $24,000 $24,000 $24,000 FVF8,2 A B 2 FVF8,4 FVF8,6 FVF8,8 Present Future Value Value

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Here are the instructions. My question is after reviewing problems 4 and 5 with the spreadsheet and instructions, can you directly specifically where I am straying and what is the best way for me to tackle these problems?Marshall Healthcare System, a not-for-profit hospital, is planning on opening an imaging center including MRI, x-ray, ultrasound, and CT. The new center will generate $3 million per year in revenues for 5 years. Expected operating expenses, excluding depreciation, would increase expenses by $1.2 million per year over the life of the project. The initial capital investment outlay for the project is $5 million, which will be depreciated on a straight line basis to a savage value. The salvage value in year 5 is $800,000. The cost of capital for this project is 12%.Compute the NPV in the IRR to determine the financial feasibility of the project.Penn Medical Center, a for-profit hospital, is considering the purchase of a new 64-slice CT scanner. The cost of the new scanner is $5 million and will be depreciated over 10 years on a straight line basis to $0 savage value. The tax rate is 40%. The financing options include either borrowing the full cost of the scanner or leasing a scanner. The lease option is a 5-year lease with equal before-tax lease payments of $950,000 per year. The borrowing alternative is a 5-year loan covering the entire cost of the scanner at an interest rate of 5%. The after-tax cost of debt is 3%. Should Penn Medical lease the equipment or borrow the money?1 A B Future Present Value Value Factor a) $24,000 FVF8,2 b) $24,000 FVF8,4 c) $24,000 FVF8,6 d) $24,000 FVF8,8 2 A B Present Future Value Value Factor a) $120,000 b) $120,000 c) $120,000 d) $120,000 3 Givens (in thousands) IniTal investment 1800000 Annual revenues 1500000 Annual operaTng expenses before depreciaTon 1000000 Annual depreciaTon expense [a] 40000 Annual change in net working capital 30000 Salvage value 200000 Cost of capital 8% ±ax rate [a] ($1,800,000 Purchase price - $200,000 Salvage value) / 5 years = 320000 Non-proFt analysis (in thousands) Years 0 1 IniTal investment ($1,600,000) Revenues $1,500,000 OperaTng expenses before depreciaTon [Given 3] 1,000,000 DepreciaTon expense [Given 4] 40,000 OperaTng income [B-C-D] 460,000 Add: depreciaTon expense [Given 4] 40,000 Net operaTng cash ²ow [E+³] 500,000 Change in net working capital [Given 5] 30,000 ±erminal values Salvage value [Given 6] Recovery of net working capital -[Sum H] PVF 3,5 PVF 6,5 PVF 9,5 PVF 12,5

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