This assignment has two parts:
Southeast General Hospital is considering investing $95,000 in new dietary equipment to replace its present equipment, which is completely depreciated and outdated/ An alternative to this investment is a long-term contract with a local firm to perform the hospital’s dietary service/ It is expected that the hospital would save $20,000 per year in operating costs if the dietary service was performed internally, versus contracting it out/ Both the expected life and the depreciable life of the projected equipment are 6 years/ Salvage value of the present equipment is expected to be zero/ Assuming that Southeast General Hospital can borrow and invest money at 8%, calculate the payback period/
Please show your work for this calculation and label it properly/
2/ Identify and describe the four stages of the capital decision-making process according to your textbook/
(Your written assignment should be at least two pages in length, double spaced, 12 font with the appropriate heading, introduction, body, conclusion, and references)/
DUE TONIGHT 11:30 NEW YORK CITY TIME
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