2 Consider another set of net cash flows: Year Cash flow 0 1,500 7 2,000 2 0 1.500 4 3000 $ 400 7 What is the net present value of the stroom if the opportunity cost of capital is 11 percent? What is the value of the stream at the end of year if the cash flows are invested in an account that pays 11 percent b. What cash flows today time). in lieu of the 2.000 cash flow, would be needed to accumulate $20,000 at the end of years? (assume that the cash flows for years through main the same 3.Assume you are the chief financial officer at Lehman Memorial Hospital. The CEO has asked you to analyze two proposed capital investment Project X and project Yeach project requires a net investment outlay of $12,000 and the opportunity cost of capital for each project is 14% the project's expected net cash flows are as following Year Project x Project Y 0 (12,000) (12,000) 1 6,600 3,500 2 3,500 3,500 3 3,500 3,500 4 3,500 3,500 a. Calculate each project's payback, NPV and IRR. b. Which project is financially acceptable? Explain 1