genmed hospital needs to replace its existing mri


Genmed Hospital needs to replace its existing MRI scanning machine. The hospital is considering funding the purchase by means of a lease. The lease would run initially for 2 years at a cost of R450 000 per annum, payable at the of the year. At the end of 2 years, the lease could be renewed for a further 2 years at a cost of R300 000 per annum, payable at the beginning of the year. The current company tax is 28%. The company has a required rate of return of 16%, Calculate the Net Present Value (NPV of the lease)

Request for Solution File

Ask an Expert for Answer!!
Managerial Accounting: genmed hospital needs to replace its existing mri
Reference No:- TGS0505441

Expected delivery within 24 Hours