buckeye healthcare corp. is proposing to spend 186,725 on an eight year project that hass...

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Accounting

buckeye healthcare corp. is proposing to spend 186,725 on an eight year project that hass estimated net cash flows of 35,000 for each of the eight years.

a. compute the net present value using a rate of return of 12% use the present value of an annuity of $1 table.

b. based on the analysis prepared in part a is the rate of return more than 12% or less than 125, explain

c. determine the internal rate of return by computing a present value factor for an annuity of $1 and using the present value of an annuity of $1.

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