Business, 19.04.2021 16:00 king3620

Humana Hospital Corporation installed a new MRI machine at a cost of $750,000 this year in its medical professional clinic in Cedar Park. This state-of-the-art system is expected to be used for 5 years and then sold for $125,000. Humana uses a return requirement of 25% per year for all of its medical diagnostic equipment. As a bioengineer- ing student currently serving a coop semester on the management staff of Humana Hospital Corpo- ration in Louisville, Kentucky, you are asked to determine the minimum revenue required each year to realize the expected recovery and return. Required:
a. What is your answer?
b. If the AOC is expected to be S80,OOO per year, what is the total revenue required to provide for recovery of capital, the 25% return, and the annual expenses?
c. Write the spreadsheet functions to display your answers.

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