Procedures generated in order to break even


Calculate the financial impact of buying a CT unit that would cost $3.0 million, would have a five-year useful life, would have a 10 percent salvage value, would have a profit per procedure of $400, and would generate an estimated volume of 450 procedures per year. The bank tells me the discount rate should be 10 percent. If the project loses money, let me know how many procedures in addition to the 450 projected per year we would need to generate in order to break even.

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Accounting Basics: Procedures generated in order to break even
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