Question: question 1 question 2 [Study guide - Midterm 2 - different numbers) Health Care Systems of the South is about to buy an expensive piece

question 1 question 1 question 2 [Study guide - Midterm 2 -

question 2

[Study guide - Midterm 2 - different numbers) Health Care Systems of the South is about to buy an expensive piece of diagnostic equipment. The company estimates that it will generate a revenue of $4,000,000 six years from now. If the equipment cost $2,750,000, should the company purchase it? (interest rate = 6%) More data is necessary No because revenues are less than the investment Yes because revenues are more than the investment None of the above All of the above A capacity alternative has an initial cost of $50,000 and cash flow of $25,000 for each of the next four years. If the cost of capital is 5 percent, what is the approximate net present value of this investment? $20,575 $53,190 $-29,425 $38,650 $88,650

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