Question

A system will cost $140,000 to install in an operating room, $4000 annually for maintenance, and...

A system will cost $140,000 to install in an operating room, $4000 annually for maintenance, and have an expected life of 5 years. The revenue per system is estimated to be $30,000 in year 1 and to increase by $10,000 per year through year 5. Determine if the project is economically justified using PW analysis and the income is 8% per year?

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