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Kindly answer question on paper and not excel formatting. 1. Capital Budgeting Marlebwo Memorial Hospital is expecting its new cancer center to generate the following
Kindly answer question on paper and not excel formatting.
1. Capital Budgeting Marlebwo Memorial Hospital is expecting its new cancer center to generate the following cash flows: Year 1 2 3 4 5 Net o ratin cash flows [Initial investment] (a) Determinethe payback period for the new cancer center. (b) Determinethe discounted payback period, at 12 percentand 16 percent.l (c) Determinethe net present value using a cost of capital of 12 percent. (d) Determine the net present value at a cost of capital of 16 percent, and compute the internal rate of return. (e) At a 12 percent cost of capital, should the project be accepted? At a 16 percent cost of capital, should the project be accepted? Explain.
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