Question 1:Go Health Inc is considering a project that costs $49,456 and has expected net cash inflows of $30,000/year for the next three years. The first inflow occurs a year after the purchase. The project has a cost of capital of 12%.

a.Calculate the cumulative cash flows for each period. What is the cumulative cash flow in period 1. (Insert number only) (3 pts)

b.Question 1(Continued): Calculate the cumulative cash flows for each period. What is the cumulative cash flow in period 2. (Insert number only)(3 pts)

c.Question 1(Continued): What is the project's payback? (Show ALL your work by typing in the calculations and demonstrating the final answer. For example, project's payback = ## + ## / ## OR by taking a snapshot of the excel formulas) (3 pts)

d.Question 1(Continued): In a sentence, interpret what the project payback means?

(3 pts)

e.Question 1(Continued): What is the project's present value for period 1 only? (Show ALL your work by typing in the calculations and demonstrating the final answer. For example, project's present value = ## + ## / ## OR by taking a snapshot of the excel formulas)(3 pts)

f.Question 1(Continued): What is the project's NPV?(Show ALL your work by typing in the calculations and demonstrating the final answer. For example, project's NPV = ## + ## / ## OR by taking a snapshot of the excel formulas)(4 pts)

g.Question 1(Continued): To begin MIRR calculations, we need to calculate future values. What is the future value for period 2?(Show ALL your work by typing in the calculations and demonstrating the final answer. For example, project's future values = ## + ## / ## OR by taking a snapshot of the excel formulas) (4 pts)

h.Question 1(Continued): What is the MIRR?(Show ALL your work by typing in the calculations and demonstrating the final answer. For example, project's MIRR = ## + ## / ## OR by taking a snapshot of the excel formulas ) (8 pts)

i.Question 1(Continued): If the MIRR is greater than the project cost of capital, should the hospital undertake this project? (Yes/No)(3 pts)