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1. The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a

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1. The director of capital budgeting for Big Sky Health System, Inc. has estimated the following cash flows for a new service and has a cost of capital of 10%. What is the project's IRR? Annual Cash Project Cost of Year Flows Capital 0 $ (125,000) 10% 75,000 55,000 25,000 Choice: 14.0% Choice: 23.6% Choice: 18.7% Choice: 8.9%

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