What Is the Net Present Value of the Investment, Assuming

question 74

Multiple Choice

What is the net present value of the investment, assuming the required rate of return is 20%? Would the hospital want to purchase the new machine?

• A) $6,955; yes
• B) $(16,955); no
• C) $(16,955); yes
• D) $25,350; yes
• E) $3,045; yes

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Definitions:

Postanesthesia Care Unit

The specialized care unit where patients recover from anesthesia following surgery.

Incentive Spirometer

A device used to help patients improve the function of their lungs by encouraging deep breathing exercises, especially after surgery.

Appendicitis

Inflammation of the appendix, a small tube attached to the large intestine, which can cause severe abdominal pain and requires urgent surgical removal.

Early Ambulation

The practice of getting patients up and walking as soon as possible after surgery or illness to promote faster recovery.