Question

rad Che custom Ramsay Health Care's NSW division is considering the purchase of two new MRI machines for its base hospital in Nowra and has taken quotes from potential suppliers. Each supplier has quoted the costs to Ramsay on a per-unit basis and the after-tax cash returns per unit from each supplier are forecast below: Years Initial investment 1 Superior Equip Supplies MRI (per unit) Cost: $120,000 $40,000 $42,000 $50,000 No 1 Medical Supplies MRI (per unit) Cost: $140,000 $40,000 $50,000 $70,500 2 3 Other information: . . Due to Ramsay Health Care's excellent credit rating, it has negotiated a cost of financing the machines at 8% p.a. The project manager in Nowra believes that each machine can be sold at the end of three years to a community clinic for $30,000 and this would be added to the final year's cash inflow. • Superior Equip Supplies is a global company. No 1 Medical Supplies is a Tasmanian company
what is the net present value for each supplier