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Consider: The hospital invested $500,000 for a new chemical analyzer for the lab. The estimated uneven cash flows are shown below for the coming 5

Consider: The hospital invested $500,000 for a new chemical analyzer for the lab. The estimated uneven cash flows are shown below for the coming 5 years with an opportunity cost rate of 10%. 
Year     Cash Flow
0           ($500)
1             $100
2            $120
3            $150
4            $180
5            $250
If the return expected on this investment is measured in dollar terms if the opportunity cost
rate is 10 percent is $80.95 which is 15%.
-Provide an explanation, in economic terms, of the return expected.
 Should this investment be made? Explain.

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