Keating Hospital is considering two different low-field MRI systems: the Clearlook System and the Goodview System. The projected annual revenues, annual costs, capital outlays, and project life for each system (in after-tax cash flows) are as follows:
Clearlook Goodview
Annual revenues $720,000 $900,000
Annual operating costs 445,000 655,000
System investment 900,000 800,000
Project life 5 years 5 years
Required:
1. Calculate the NPV for the Clearlook System.2. Calculate the NPV for the Goodview System. Which MRI system would be chosen?3. What if Keating Hospital wants to know why IRR is not being used for the investment analysis?4. Calculate the IRR for each project and explain why it is not suitable for choosing among mutually exclusive investments.

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1