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Can you help me find the answers to this question Jan Boothe iS the CFO Ofthe Sports Medicine Clinic. Boothe iS trying to determine Whether

Can you help me find the answers to this question
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Jan Boothe iS the CFO Ofthe Sports Medicine Clinic. Boothe iS trying to determine Whether or not the Clinic Should move patient files and Other items Out Ofa spare in the Clinic and use the room for physiotherapy work She has determined that it would require an investment Of $286,000 equipment and related COStS Of getting the room ready use. Based on receipts being generated Other rooms in the Clinic. Boothe estimates that the new room would generate a net Cash 1flOW Of 570.000 per year The equipment purchased for the room muld have a seven-year estimated useful life (Ignore income taxes.) 1. Compute the IRR on the equipment for the new room to one decimal place. Verify answer by Computing the net present value Of the equipment using the IRR nu have Computed as the discount rate. (Hint Microsoft to Cakulate the discount factor(S) ) (Do not round calculations and PV factor. ROLH1d the final answers to the nearest whole Negative amount be indicated by a minus rate ot return Net value 16 2. Assume that goathe Will not purchase the new equipment unless it promises a return Of at least 14%_ Compute the amount Of annual Cash that would provide this return on the s2g6.ooo investment. (Hint Microsoft Excel to cakulate the discount factor(S) ) (DO not round intemediate calculations and PV factor. ROLH1d the final answers to the nearest whole dollar.) 3-a. seven years iS the average life for physiotherapy equipment, g-OOthe knows that due to Changing technology this life Can vary Substantially. Compute the IRR to one decimal place if the life Of the equipment were five years and nine years, rather than Seven years. (Hint: use Microsoft Excel to Calculate the discount factor(S).) (DO not rOM1d intermediate Cakulations and round your final answers to the nearest whole number.) IS there any information provided by these computations that you particularly anxious to Boothe? 4. goathe iS unsure about the estimated S70000 annual Cash inflow from the room. She thinks that the actual Cash inflow could be as much as greater Ot less than this figure. a. Assume that the actual cash inflow each year iS greater than estimated Recompute the IRR to one decimal place using the seven-year life. (Hint: use Microsoft to Calculate the discount (DO not intermediate Cakulations and round your final answers to the nearest whole number.) b. Assume that the actual cash inflow each year iS than estimated. Recompute the IRR to one decimal place using the seven- year life. (Hint to calculate the discount factor(S).) (DO not round intemediate and round final answers to the nearest whole S. Refer to the original data. Assume that the equipment iS purchased and that the room iS opened for use However. dL to an increasing number Of physiotherapists in the the Clinic iS able to generate only "0.000 per year in net Cash receipts from the new At the end Of five years. the Closes the room and Sells the equiprnent to a Company a Cash grice Of Compute the IRR to decimal place that the Clinic earned on its investment the five-year period. (Hint Excel to calculate the discount factor(S). A useful way to proceed iS to find the discount rate that will Cause the net present value Of the investment to be equal to. or near, (DO not round intemediate calculations and rOLMd your final answers to the nearest Whee number.)

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