Prepare a net present value analysis of the desirability

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Carver Hospital is considering the purchase of an attachment for its X-ray machine that will cost $3,169. The attachment will be usable for four years, after which time it will have no salvage value. It will increase net cash inflows by $1,000 per year in the X-ray department. The hospital's board of directors requires a rate of return of at least 10% on such investments.

Prepare a net present value analysis of the desirability of purchasing the X-ray attachment. Show each step of your work.

Reference no: EM131706686

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