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Chant-tar 11 Problem 3 Capitol Health Plans, lnc., is evaluating two different methods for providing home health services to its members. Both methods involve contracting

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Chant-tar 11 Problem 3 Capitol Health Plans, lnc., is evaluating two different methods for providing home health services to its members. Both methods involve contracting out for services, and the health outcomes and revenues are not affected by the method chosen. Therefore, the incremental cash flows for the decision are all outflows. Here are the proiected flows: a. What is each alternative's IRR? Year Method A Q Method B 0 6i300,000.00} ${120.000.00} 1 :'li 66,DDG.CD $ 96,000.00 2 $ 66,000.00 $ 96,000.00 3 $ 66,000.00 $ 96,000.00 46 66,000.00 '6 96,000.00 5 6 66000006 96,000.00 IRR 3% 75%

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