Lockhart Hospital is considering the purchase of new medical equipment for $25,000. The old equipment has zero salvage value. The costs associated with operating the equipment are: $\begin{array}{lcc}
&\underline{\text { Old Equipment}}&\underline{\text { New Equipment} }\
\text { Labor } & \$ 9,000 & \$ 4,500 \
\text { Maintenance } & 2,000 & 1,200 \
\text { Miscellaneous } & 1,500 & 1,300 \
\text { Depreciation } & 8,000 & 4,750
\end{array}$
If the new machine is purchased and ignoring income taxes, the payback period is:

Question

Lockhart Hospital is considering the purchase of new medical equipment for $25,000. The old equipment has zero salvage value. The costs associated with operating the equipment are: $\begin{array}{lcc}
&\underline{\text { Old Equipment}}&\underline{\text {  New Equipment} }\
\text { Labor } & \$ 9,000 & \$ 4,500 \
\text { Maintenance } & 2,000 & 1,200 \
\text { Miscellaneous } & 1,500 & 1,300 \
\text { Depreciation } & 8,000 & 4,750
\end{array}$
 If the new machine is purchased and ignoring income taxes, the payback period is:

Quizplus · Accepted Answer

The Answer of Lockhart Hospital is considering the purchase of new medical equipment for $25,000. The old equipment has zero salvage value. The costs associated with operating the equipment are: $\begin{array}{lcc}
&\underline{\text { Old Equipment}}&\underline{\text {  New Equipment} }\
\text { Labor } & \$ 9,000 & \$ 4,500 \
\text { Maintenance } & 2,000 & 1,200 \
\text { Miscellaneous } & 1,500 & 1,300 \
\text { Depreciation } & 8,000 & 4,750
\end{array}$
 If the new machine is purchased and ignoring income taxes, the payback period is:

Lockhart Hospital Is Considering the Purchase of New Medical Equipment