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You're still working for the hospital (they were impressed with your financial skills) and your boss wants to purchase a new scanner for the department. If your return on assets target is 15%, should you buy a new scanner for $500,000? Your boss estimates that the new scanner will save the department $50,000 a year and add no additional cost to the department. Buy or not? Why? What is the maximum you would pay for the scanner?

Financial Management, Finance

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