My writer delivered an awesome dissertation on the Creek War, I definitely didn’t have the time to do all the research she did on my own.
Essay (any type)
09/08/2022
California Health Center, a for ?profit hospital, is evaluating the purchase of new diagnostic…
California Health Center, a for ?profit hospital, is evaluating the purchase of new diagnostic equipment. The equipment, which costs $600,000, has an expected life of 5 years and an estimated pretax salvage value of $200,000at that time. The equipment is expected to be used 15 times a day for 250 days a year for each year of the project?s life. On average, each procedure is expected to generate $80 in collections, which is net of bad debt losses and contractual allowances, in its first year of use. Thus, net revenues for Year 1 are estimated at 15X250X80=$300,000.Labor maintenance costs are expected to be $100,000 during the first year of operation, while utilities will cost another $10,000and cash overhead will increase by $5,000 in Year 1. The cost for expendable supplies is expected to average $5 per procedure during the first year. All costs and revenues, except depreciation, are expected to increase at 5% inflation rate after the first year.The equipment falls into the MACRS five-year class for tax depreciation and hence is subject to following deprecation allowance;Year Allowancea)0.20b)0.32c)0.19d)0.12e) 0.11f) 0.061.00The hospital?s tax rate is 40%, and its corporate cost of capital is 10%
