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Minimum annual savings due to computer to justify purchase

Problem:

Lawrence Hospital is tax exempt. It would like to install a new computer costing $232,000 with a useful life of 8 years. The hospital plans to sell the computer for $20,000 after 5 years. The proper discount rate for the hospital is 9%. Find the minimum annual savings due to this computer to justify its purchase.

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Management Information Sys: Minimum annual savings due to computer to justify purchase

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Management Information Sys: Minimum annual savings due to computer to justify purchase

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