Costs of initial start-up costs

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A new project being considered by a hospital has costs of initial start-up costs of $50 million and is expected to accrue benefits (additional revenue) of $14 million per year in Years 3, 4, 5 and 6. At a 10% discount rate, should the hospital invest in the project? ("Year 1" means one year from today, "Year 2" means two years from today, and so on."Start-up" here means "Year 0" - that is, today.)

Reference no: EM131263284

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