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2.-I need help with this problem... Plz! add equations and functions so I can understand how you got the answer... thx! Problem Set 5 Chapter

2.-I need help with this problem...
Plz! add equations and functions so I can understand how you got the answer... thx!
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Problem Set 5 Chapter 11 Capital Bud ng Assigned Problem 2 6 Great Lakes Clinic has been asked to provide exclusive healthcare services for next year's World 7 Exposition. Although flattered by the request, the elinic's managers want to conduct a financial 8 analysis of the project. There will be an up-front cost of s160,000 to get the clinic in operation. Then, 9 a net cash inflow ofsi million is expected from operations in each of the two years of the exposition 10 However, the clinic has to pay the organizers of the position a fee for the marketing value of the il opportunity. This fee, which must be paid at the end of the second year, is S2 million. 13 a. What are the cash nows associated with the project that are relevant for capital budgeting purpose? 15 b. Find the project NPv if its cost of capital 25 percent and if its cost of capital is 400%. 16 Why would a financial calculator give an error message when attempting to calculate this project's IRR? 18 e. If the project cost capital is 10 percent, what would be the project's NPV in each case? 19 Shoud the project be undertaken? 20 21 ANSWER 23 Cash flows: Year Cash Flow 26 28 29 34 NPV a 35 NPV 400% 38 Assigned Problem Assigned Problem 2 Normal view Ready

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