Long Beach Community Hospital is evaluating the following projects for the $2024$ budget year.

Their cost of capital for an average risk project is $7\%$; and they add or subtract $3\%$ to projects with more or less risk.

The following projects are under review with their risk category:

RC $($Research Clinic$)-$ Above Average Risk

EC $($Eye Clinic$)-$ Below Average Risk

ACC $($Ambulatory Care Clinic$)-$ Average Risk

RadC $($Radiology Clinic$)-$ Above Average Risk

SC $($Surgery Clinic$)-$ Average Risk

CC $($Cardiology Clinic$)-$ Below Average Risk

a$.$ Using the cash flows for each project below, calculate the Risk Adjusted Cost of Capital, the NPV$,$ IRR, and MIRR $($use the risk adjusted cost of capital for both rates$)$

Year RC EC ACC RadC SC CC

$0-$$$1,250,000-$$$850,000-$$$900,000-$$$2,500,000-$$$1,550,000-$$$4,557,200$

$1$ $$234,000$ $$125,000$ $$150,000$ $$678,000$ $$351,000$ $$985,000$

$2$ $$257,400$ $$155,000$ $$160,000$ $$690,000$ $$371,000$ $$999,500$

$3$ $$545,000$ $$225,000$ $$170,000$ $$720,000$ $$411,000$ $$1,095,500$

$4$ $$599,500$ $$350,000$ $$180,000$ $$725,000$ $$431,000$ $$1,125,500$

$5$ $$575,000$ $$350,000$ $$190,000$ $$725,000$ $$471,000$ $$1,150,000$

Risk Adjusted Cost of Capital:

NPV

IRR

MIRR

b$.$ Long Beach Community Hospital has allocated $$7$M for their capital budget for $2024.$ Which projects should be approved and why?