Directions - Module 6 - Part 2 - HOMEWORK - The Basics of Capital Budgeting Please try your best on these answers. The more you work on these the better off you will be for the te I have created a PowerPoint as guides to try to get you through these questions. The numbers will be different but the processes the same. The answers and solutions will be shared on, February 28th. 1. Winston Clinic is evaluating a project that costs $62,125 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12%. What year does the project have payback? Choice: Year 3.4 Choice: Year 5.18 Choice: Year 8.0 Choice: Cannot tell with this information 2. Winston Clinic is evaluating a project that costs $50,000 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12%. What is the project's NPV? Choice: $3,495.25 Choice: $8,503.50 Choice: $9,611.68 Choice: $7,487.87 3. Winston Clinic is evaluating a project that costs $50,000 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12%. What is the project's IRR? (hint: remember to put the answer as a percentage) Choice: 17.3% Choice: 13.5% Choice: 7.9% Choice: 5.4%