Suppose that you are the chief financial officer at Porter Memorial Hospital.  The CEO has asked you to analyze two proposed capital investment-Project X and Project Y.  Every project needs a net investment outlay of $10,000, and the opportunity cost of capital for every project is 12 precent.  The projects' expected net cash flows are as follows:

a.  Calculate every project's paybeck, NPV, and IRR.
b.  Which project (or projects) is financially acceptable?  Describe your answer.

 

Posted Date: 3/18/2013 1:42:29 AM | Location : United States

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