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Doctors Hanson, Dominick, and Borchard are radiologists living in Fargo, North Dakota. They realize that many of the state’s small rural hospitals cannot afford to purchase their own magnetic resonance imaging devices (MRIs). Thus, the doctors are considering whether it would be feasible for them to form a corporation and invest in their own mobile MRI unit. The unit would be transported on a scheduled basis to more than 100 rural hospitals using an 18-wheel tractor-trailer. The cost of a tractor-trailer equipped with MRI equipment is approximately $1,250,000. The estimated life of the investment is eight years, after which time its salvage value is expected to be no more than $100,000.

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