Kaiser Oakland Practice expects Projects 1 and 2 to generate the following cash flows:

a. Determine the payback for both projects.

b. Determine the IRR.

c. Determine the NPV at a cost of capital of 12 percent.

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Project 1 (in '000s) Givens 1 Initial investment 2 Net operating cash flows Project 2 (in '000s) Givens 1 Initial investment 2 Net operating cash flows Years 0 1 2 3 4 5 ($2,800) $300 $500 $800 $1,200 $2,000 Years 0 1 2 3 4 5 ($5,000) $1,300 $1,300 $1,300 $1,300 $1,300