You are considering buying new PACS hardware/software that will require an initial outlay of $54,200. The...

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Finance

You are considering buying new PACS hardware/software that willrequire an initial outlay of $54,200. The system has an expecteduseful life of 5 years and will generate free cash flows to thehospital as a whole of $20,608 at the end of each year over its 5year life. In addition, the salvage value of the system is expectedto be $13,200 based on current market conditions. Given a requiredrate of return of 15 percent, determine the following:

a. Payback Period

b. NPV

c. IRR

d. Should this project be accepted?

Please show work in Excel!

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