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0 1 2 5 2. Washington Community Hospital is expecting its new dialysis unit to generate the following cash flows: Givens Years 3 4 Initial

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0 1 2 5 2. Washington Community Hospital is expecting its new dialysis unit to generate the following cash flows: Givens Years 3 4 Initial ($20,000,000) investment Net $2,000,000 $4,000,000 $5,000,000 $9,000,000 $28,000,000 operating cash flows a. Determine the payback for the new dialysis unit. b. Determine the NPV using a cost of capital of 15 percent. c. Determine the NPV at a cost of capital of 20 percent and compute the IRR. d. At a 15 percent cost of capital, should the project be accepted? At a 20 percent cost of capital, should the project be accepted? Explain

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