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Please solve Question 11 (a, b, c, d) Please show all work not? 11. Alameda Hospital is expecting its new cancer center to generate the

Please solve Question 11 (a, b, c, d)

Please show all work

image text in transcribed

not? 11. Alameda Hospital is expecting its new cancer center to generate the following cash flows: 4 5 3 Givens Years 0 1 2 ($20,000,000) Initial investment Net operating cash flows $25,000,000 $2,000,000 $7,000,000 $11,000,000 $13,000,000 a. b. C. Determine the payback for the new cancer center. Determine the net present value using a cost of capital of 15 percent. Determine the net present value at a cost of capital of 20 percent, and compute the internal rate of return. At a 15 percent cost of capital, should the project be accepted? At a 20 percent cost of capi- tal, should the project be accepted? Explain. d

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