Operating expenses for the medical device

Reference no: EM13722521

Solve the following question

Question- A certain medical device will result in an estimated $15,000 reduction in hospital labor expenses during its first year of operation. Labor expenses (and thus savings) are projected to increase at a rate of 7% per year after the first year. Additional operating expenses for the device (maintenance, electric power, etc.) are thereafter (i.e., $3,750 in year two and so on.) It is anticipated that the device will last for 10 years and will have no market value at that time.

Part 1- If the MARR is 10% per year, how much can the hospitals affords to pay for this device?

I need assist to describe how much the hospitals can afford to pay for medical device and use an Excel spreadsheet in your solution.

Reference no: EM13722521

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