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12. Buxton Community is expecting its new dialysis unit to generate the following cash flows: Givens Initial investment Net operating cash flows Years ($10,000,000) $1,500,000

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12. Buxton Community is expecting its new dialysis unit to generate the following cash flows: Givens Initial investment Net operating cash flows Years ($10,000,000) $1,500,000 $2,000,000 $4,000,000 $7,000,000 $14,000,000 a. Determine the payback for the new dialysis unit. b. Determine the NPV using a cost of capital of 11 percent. c. Determine the NPV at a cost of capital of 20 percent and compute the IRR d. At an 11 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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