Th e new dialysis facility is expected to cost $3,000,000. Additionally, furniture and other fixtures,...

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Th e new dialysis facility is expected to cost $3,000,000. Additionally, furniture and other fixtures, along with relocation expenses of current equipment, would cost $1,000,000, for a total cost of $4,000,000. The funds needed for the new facility will be obtained from a 20-year loan at local bank. The loan (including interest) will be paid off over 20 years at a rate of $400,000 per year. Because the specific financing details are known, it is possible to estimate the actual annual facilities costs for the new Dialysis Center, something that is not possible for units located within the hospital complex

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