Question
14.6. The director of capital budgeting for Big Sky Health Systems, Inc., has estimated the following cash flows in thousands of dollars for a proposed
14.6. The director of capital budgeting for Big Sky Health Systems, Inc., has estimated the following cash flows in thousands of dollars for a proposed new service:
| Year | Expected Net Cash Flow |
| 0 | ($100) |
| 1 | 70 |
| 2 | 50 |
| 3 | 20 |
The projects cost of capital is 10 percent.
a. What is the projects payback period?
b. What is the projects NPV?
c. What is the projects IRR? Its MIRR?
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The Investors Guidebook To Fixed Income Investments
Authors: Stuart R. Veale
1st Edition
0735205310, 978-0735205314
