nts surgery robot for 50000 and spend 100 per dary o willhe

nts surgery robot for $50,000 and spend $100 per dary o willhe a 5-year life with no salvage value. Ahematively, the hogial 00 per day without any other costs. Determine the minimum mumber of in Doha can purchase a mainternance. The ent the to justify its purchase for the hospital if the interest rate is 10% per year.

Solution

Let minimum number of days per year be D.

For equivalence, Annual worth of both options are equal.

$50,000 x A/P(10%, 5) + $100 x D = $400 x D

D x $(400 - 100) = $50,000 x 0.2638**

D x $300 = $13,190

D = $13,190 / $300

D = 43.97 days ~ 44 days