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Please show all work & calculations. Capitol Healthplan, Inc. is evaluating two different methods for providing home health services to its members. Both methods involve

Please show all work & calculations.

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Capitol Healthplan, Inc. is evaluating two different methods for providing home health services to its members. Both methods involve contracting out for services, and the health outcomes and revenues are not affected by the method chosen. Therefore, the incremental cash flows for the decision are all outflows. Here are the projected flows: Year 0 1 2 Method A ($300,000) ($ 66,000) ($66,000) ($ 66,000) ($66,000) ($66,000) Method B ($120,000) ($96,000) ($96,000) ($96,000) ($96,000) ($96,000) 3 4 5 a. What is each alternative's IRR? =irr(cash flows) b. If the cost of capital for both methods is 9 percent, which method should be choosen? Why? =npv(rate,pmts)+initial

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