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Healthcare Clinic is evaluating a Capital Budgeting project that costs $52,125 and has expected net cash...

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Finance

Healthcare Clinic is evaluating a Capital Budgeting project thatcosts $52,125 and has expected net cash flows of $12,000 per yearfor eight years. The first inflows occur one year after the costoutflow and the project has a cost of capital of 12 percent.

Below is a table of cash flows for the Capital Budgetproject:

YearAnnual CashFlowCumulative CashFlow
0-$52,125-$52,125
1$12,000-$40,125
2$12,000-$28,125
3$12,000-$16,125
4$12,000-$4,125
5$12,000$7,875
6$12,000$19,875
7$12,000$31,875
8$12,000$43,875

Pleaseshow your work for entering info in excel


What is the project's payback

What is the project's NPV

What is the IRR

Is the project financially acceptable? Explain your answer.

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