DrMagneto Is Evaluating Whether to Open a Private MRI Clinic

question 80

Multiple Choice

Dr.Magneto is evaluating whether to open a private MRI clinic in leased office space in a local strip mall.The clinic will run for two years and then close.Before the clinic opens,the offices require $200,000 of renovations.Dr.Magneto will buy $20,000 of computer equipment and one MRI machine.The MRI machine (GE 3.0T Signa Excite HD) costs $2.4M.Assume that the renovations,computer equipment and MRI are paid for at the beginning of the first year (t=0) and that all three are classified as 15-year property.
Assume that the MRI machine will be sold for $500,000 at the end of the second year of business.The computer equipment will be worthless at that time.
The clinic can perform 72 scans per week for 49 operational weeks per year.The clinic will charge $600 per scan.
The clinic will need two technicians,two receptionists and one office manager.Wages,salaries and other payroll costs (i.e.,health insurance premiums) will total $275,000 per year.Maintenance,supplies,marketing and operating costs for the machine are expected to be $200,000 per year.Annual rent is $60,000 payable at the end of each year.Assume that all revenues (and expenses) occur at the end of the year.The tax rate is 40% and Dr.Magneto's cost of capital is 10%.What are the operating cash flows at the end of Year 1?
MACRS Depreciation Rates

• A) $997,080
• B) $1,001,480
• C) $1,037,480
• D) $1,048,640
• E) $1,053,880

Understand the concept of chunking and its application in enhancing memory.

Identify the processes that can lead to forgetting in short-term memory.

Comprehend the experimental setup and findings of Sperling’s study of sensory memory.

Recognize the coding mechanisms of short-term memory.

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Definitions:

Maximum Material Condition

A condition of a part where it contains the largest amount of material within its tolerances, often used in determining limit fits.

Virtual Size

The conceptual or calculated dimension that represents an aspect of an object, often used in manufacturing or engineering to refer to tolerances or ideal dimensions.

Geometric Tolerance

A set of standards that defines the allowable shape, orientation, and positioning variations for features on manufactured parts.

MMC

Maximum Material Condition; a feature size where it contains the maximum amount of material yet still meets the part's tolerance specifications.