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Calculate the financial impact of buying a CT unit that would cost $3 million, Would have...

Calculate the financial impact of buying a CT unit that would cost $3 million, Would have a 5 year useful life, would have a 10% salvage value,   Would have a profit per procedure of $400, And would generate an estimated volume of 450 procedures per year. The bank tells you the discount rate should be 10%. If the project loses money let me know how many procedures in addition to the 450 projected prior year we would need to generate in order to break even.

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Answer #1

Salvage value is 10% so we have to get atleast 2.9 million at the end of 5 year

450 procedure at the rate of $400 will produce 180000

18000 will be reduced from this amount if 10 percent discount is given

so the procedure will cost 360$ and we have to find additional 18000$

so the number of procedure needed more will 18000/360 = 50

50 more procedure has to be carried more in a year

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