Artem Hospital is considering the purchase of an attachment for its X-ray machine that will cost $3,170. The attachment will be usable for four years, after which time it will have no salvage value. It will increase net cash inflows by $1,000 per year in the X-ray department. The hospital’s board of directors requires a rate of return of at least 10% on such investments in equipment. 

What is the net present value of this investment?

Answer rating: 100% (QA)

To calculate the net present value NPV of the investment we need to discount the net ... View the full answer