Alameda Hospital is expecting its new cancer center to generate the following cash flows: ** See chart ** Determine the payback for the new cancer center. Determine the net present value using a cost of capital of 15 percent. Determine the net present value at a cost of capital of 20 percent, and compute the internal rate of return. At a 15 percent cost of capital, should the project be accepted? At a 20 percent cost of capital, should the project be accepted? Explain.

1 2 3 5 1. Alameda Hospital is expecting its new cancer center to generate the following cash flows: Givens Years o Initial ($20,000,000) investment Net $2,000,000 $7,000,000 $11,000,000 $13,000,000 $25,000,000 operating cash flows a. Determine the payback for the new cancer center. b. Determine the net present value using a cost of capital of 15 percent. c. Determine the net present value at a cost of capital of 20 percent, and compute the internal rate of return. d. At a 15 percent cost of capital, should the project be accepted? At a 20 percent cost of capital should the project be accepted? Explain