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In: AccountingThe HogwartsHospital has an old MRI machine and an outdated computer system,and they are...The HogwartsHospital has an old MRI machine and an outdated computer system,and they are considering purchasing their options:Information to help in theirdecision is as follows:MRI machine:cost:$875,000Number of MRI's performed each year8200expected labor savings due to more efficientmachine: $40 per patientlife of new machine:5 yearsComputer systemcost:$600,000expected cost savings per year with newsystem:$110,000life of computer system6 yearsHogwart's cost of borrowing (cost of capital)8%REQUIRED:A) WHAT IS THE PAYBACK FOR THIS NEW MRIMACHINE?B) WHAT IS THE NET PRESENT VALUE OF THIS NEW MRIMACHINE?C) FROM A PURELY FINANCIAL PERSPECTIVE SHOULDHOGWARTS CONSIDER ACQUIRING THE NEW MRI MACHINE?D) WHAT OTHER CONSIDERATIONS SHOULD HOGWARTS LOOKAT IN DECIDING WHETHER OR NOT TO ACQUIRE THE MRI MACHINE.D) WHAT IS THE PAYBACK FOR THE COMPUTERSYSTEM?E) WHAT IS THE NET PRESENT VALUE OF THE COMPUTERSYSTEMF) FROM A PURELY FINANCIAL PERSPECTIVE, SHOULDHOGWARTS' CONSIDER ACQUIRING THE NEW COMPUTER SYSTEM?G) HOGWARTS ONLY HAS THE RESOURCES TO ACQUIRE ATMOST 1 OF THESE ITEMS; WHICH (IF ANY ) DO YOU RECOMMEND?JUSTIFY YOUR ANSWER IN A MEMO TO THE DR. GANDOFF,CEO OF HOGWARTS