Exercise $26\mathrm{.}13($Static$)$ Net Present Value Computations $($LO$26-2,$ LO$26-3)$

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The radiology department at St$.$ Joseph$$s Hospital, a not$-$for$-$profit, is considering purchasing a magnetic resonance imaging $($MRI$)$ machine. The cost to purchase and install an MRI is approximately $$2,000,000.$ Assume St$.$ Joseph$$s would like a minimum $6$ percent return and that the economic life of the MRI is expected to be $10$ years, with no salvage value. Assume that if the MRI is installed, the net cash flows are expected to increase by $$400,000$ per year. Use Exhibit $264$ for present value factors