MGH is considering purchasing a new MRI scanner at a purchase price of $300,000. The useful life of the MRI is 10 years, after which the machine has no salvage value. Operating income is estimated to be $200,000 per year and operating costs are estimated to be $50,000 per year. The above data is summarized in the table below:

Year	0	1	...	10
Capital increase	300.000	–	...	–
operating income	–	200.000	...	200.000
operating cost	–	50.000	...	50.000

MGH is a hospital and therefore tax-free. Suppose the risk-adjusted discount rate is 10%. What is the NPV of the project? ( Note : Do not put a comma in your answer.)

NBD = $_____

Answer rating: 100% (QA)

To calculate the Net Present Value NPV of the project we need to discount the cash flows from each y... View the full answer