9. HealthCare, Inc. is in its annual Capital Budgeting review process. The company has searched for investment opportunities and gathered information for each of the proposals listed below. The company has decided to use a hurdle rate of 14%. Management has determined that for any project to be accepted, it must first have a Payback Period of less than 4.00 years and must have a positive NPV. The investment for each company is assumed to be at Time 0. The Cash Flows for each proposed project are assumed to occur at the end of the year stated. Cash Flows beyond 7 years are not considered due to the increased uncertainty of these potential future cash flows. Calculate the Payback Period in years for each project. Calculate the NPV (following the instructions given for each project). State which projects(s) should be accepted and why. Project I: The SPRING Project: Payback Period NPV (NOTE: Use the appendices to calculate the NPV for The SPRING Project). Investment Required: $400,000. Cash Flows: Year 1 = $90,000 Year 2 = 95,000 Year 3 = 110,000 Year 4 = 120,000 Year 5 = 130,000 Year 6 = 150,000 Year 7 = 170,000 Year 7 Shutdown costs = $25,000 Project II: The FALL Project: Payback Period NPV (NOTE: Use the Time Value function on your calculator to calculate the NPV for the FALL Project) Investment Required: $500,000 Cash Flows: Year 1 = $80,000 Year 2 = 102,000 Year 3 = 112,000 Year 4 = 115,000 Year 5 = 122,000 Year 6 = 128,000 Year 7 = 246,000 Should The SPRING Project be accepted? Why? Should The FALL Project be accepted? Why