Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. healthcare clinic is evaluating a capital budgetin

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

90.2K

Verified Solution

Question

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.

Answer & Explanation Solved by verified expert
4.1 Ratings (815 Votes)
i have posted complete answer as well as picture for the    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Assume that the program counter (PC) is set to 0x00000000. Describe how each of the instructions...

Programming
Q

Program in Java Create a stack class to store integers and implement following methods: 1- void push(int num):...

Programming
Q

A sample of mixture of FeSO4.(NH4)2So4.6H2O and inert material is dissolved in water, and the Fe...

Chemistry
Q

below 2 questions in total PART A B PICK ONE OF GROUP of TOPICS 1...

Basic Math
Q

Write in simplified form and list all restrictions on the domain.f(y) = 7+ y/y+6 -...

Basic Math
Q

What is the perimeter of square BCDE 6 4 D 104 8 6 4 C...

Algebra
Q

Budget Performance Report Genie in a Bottle Company (GBC) manufactures plastic two-liter bottles for the...

Accounting
Q

A government bond issued in Gemany has a coupon rate of 3%, a face value...

Accounting
Q

Tiger Furnishings produces two models of cabinets for home theater components, the Basic and the...

Accounting
Q

Entries for Materials Cost Flows in a Process Cost System The Hershey Company (HSY) manufactures...

Accounting
Q

duction and Conclusion for partnership

Accounting
Q

Question 2: Super Malls Inc. runs a chain of shopping malls across the UK. Recently,...

Finance