Computing payback and discounted payback periods

Reference no: EM1310284

Q1) Final SLP is devoted to capital budgeting for Trinity’s project. Cost to build facility is $1 million. Cost of capital is 15%. Facility is expected to make $250 thousand in 2nd year and $500 in 3rd year. After that revenue projections are a 25% increase each year.
Based on information from previous SLPs create your final recommendations. Comprise the following:

i) Describe overall financial condition of firm and probability the hospital has enough cash flow over next 5 years to follow project.

ii) Compute and interpret payback and discounted payback periods in addition to NPV, IRR, MIRR, and PI for project.

iii) Final recommendations for pursuing project.

Reference no: EM1310284

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