11 13 15 8 -234567000 S A B 00 1 C E F G H J Benson Regional Medical Center: Capital Budgeting Discount Rate = 10% WACC = 10% Years Program A Cash Flows Years Program B Cash Flows 10 12 012mu -$228,500.00 $16,715.00 $83,070.24 3 $172,620.29 4 $137,957.29 5 $92,975.49 012mL -$419,500.00 $45,430.00 $153,351.75 3 $294,861.83 4 $282,824.17 5 $220,932.28 14 Discounted Payback Period Discounted Payback Period Cash Flows Cumulative Cash Flows Cumulative Years Cash Flows discounted to Discounted Years Cash Flows discounted to Discounted 16 17 18 Project A today's $$ (PV) CFs 0 -$228,500.00 $0.00 1 $16,715.00 $0.00 Project B today's $$ (PV) CFs 2 3 4 5 19 20 21 23232 22 23 24 Net Present Value= 25 Internal Rate of Return= 26 Discounted Payback (YY/MM)= $83,070.24 $0.00 $172,620.29 $0.00 $137,957.29 $0.00 012mu 0 -$419,500.00 $0.00 $45,430.00 $0.00 $153,351.75 $0.00 3 $294,861.83 $0.00 4 $282,824.17 $0.00 $92,975.49 $0.00 5 $220,932.28 $0.00 Net Present Value = Internal Rate of Return= Discounted Payback (YY/MM)=