Question
HealthTech Corp. is planning to invest in a project that requires an initial investment of $1,000,000. The expected cash inflows are as follows: Year Cash
HealthTech Corp. is planning to invest in a project that requires an initial investment of $1,000,000. The expected cash inflows are as follows:
Year | Cash Flows |
0 | -$1,000,000 |
1 | $250,000 |
2 | $300,000 |
3 | $350,000 |
4 | $400,000 |
a. Calculate the payback period for the project. b. If the company's cost of capital is 8%, calculate the NPV and determine if the project should be accepted.
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College Algebra
Authors: Michael Sullivan, Michael Sullivan III
11th Edition
0135226864, 9780135226865
