The cost of a biomedical image scanning machine is 95000 with an estimated annual maintenance cost of $4500 and an overhauling cost of 3000 in year 6. The machine is projected to save $25000 in direct...

Extracted text: The cost of a biomedical image scanning machine is 95000 with an estimated annual maintenance cost of $4500 and an overhauling cost of 3000 in year 6. The machine is projected to save $25000 in direct labor cost annually. Biomedical Analytics Inc. the company who purchased the machine plans to sell it 10 years from now at a price of $35000. a) Draw the cash flow diagram b) Determine the Rate of Return (ROR) if staring with two initial guesses of 18% and 20% Hints: Profit= R-TC Profit = rQ-(FC+ v Q = Annual Quantity