Question
Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze 2 proposed capital investments--Project X and
Assume that you are the chief financial officer at Porter Memorial Hospital. The CEO has asked you to analyze 2 proposed capital investments--Project X and Project Y. Each project requires a net investment layout of $10,000 and the cost for each project is 12%. The projects expected net cash flows are as follows?
Calculate each project's payback period, net present value, and internal rate of return
Year | Project X |
0 | -10000 |
1 | 6500 |
2 | 3000 |
3 | 3000 |
4 | 1000 |
Project Y |
-10000 |
3000 |
3000 |
3000 |
3000 |
Calculate each project's payback period, net present value, and internal rate of return
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