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C H Decision Rules for Assisted Living Project Investment Year 1 OF Year 2 OF Years OF Year 4 FOP Valley -$30.00 $10.00 $2.00 $4.00

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C H Decision Rules for Assisted Living Project Investment Year 1 OF Year 2 OF Years OF Year 4 FOP Valley -$30.00 $10.00 $2.00 $4.00 S45.00 Retire Nole -$15.00 $0.00 50.00 50.00 $0.00 Pass Away Lots $10.00 $5.00 $5.00 $5.00 $5.00 Use the spreadsheet titled "Decision Rules" in your exam template to complete this problem. You are trying to decide which assisted living facility you should buy based upon cash flows as follows (in millions Project CFO CF 1 CF 2 CF 3 CF 4 FOP Valley -$30 $10 $2 $4 $45 Retire Nole -$15 $0 $0 $0 $40 Pass Away Lots - $10 $5 $5 $5 $5 Rate 15.00 FOP NPV Retire Nole NPV Pass Away Answers $8.57 -$15.00 $427 25% ANUM + FOP IRR Retire Nole IR Pass Away IRR Your cost of capital is 15% PL FOP Pl Retire P Pass Away In the Excel Template, use the tab called "Decision Rules Calculate the NPV. IRR, and Profitability Index for each project. You have a budget constraint of $50 million. Which projects) should you choose and briefly, why? Short Answer answer on an cher NP NPV rule Viewet Format Tools Table Decision Rules Peter WACC

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