h Home Layoutabies Font : |Calibri (Body) 11 | |A-IA- Fill A4 ! * O (-fel Assume that you are the CFO at Port 1 CHAPTER 14: CAPITAL BUDGETING 2 Homework 4.7, Chapter 14 Assume that you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital Investments-Project X and Project Y. Each project requires a net investment outlay of $25,000, and the cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows: 6 10 Year Project X 122 13 3 14 4 15 16 a Calculate each project's payback period, net present value (NPV), and internal rate of return (IRR) Project Y 8,000 8,000 8,000 8,000 8,000 8,000 5,000 18 21 24 25 28 b. Which project(s) is/are financially acceptable? Explain your answer. 29 4.1 H 4.2 H 4.3 H 4.4 H 4.5 H 4.6 H Normal View Select destination and press ENTER or choose Paste 13