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sume that you are the chief financial officer at Mercy General Hospi investments net invest project is 10 percent. The projects' expected net cash flows
sume that you are the chief financial officer at Mercy General Hospi investments net invest project is 10 percent. The projects' expected net cash flows are as follows: 14 11 As ital. The CEO has asked you to analyze two proposed capital -Project X and Project Y. Each project requires a ment outlay of $75,000, and the cost of capital for each Year Project X Project Y 0($75,000) ($75,000) 50,000 15,000 15,000 10,000 20,000 20,000 20,000 30,000 4 a. Calculate each project's net present value (NPV) and internal rate of return (IRR) . Which project (or projects) is financially acceptable if you reach different conclusions regarding the financial acceptability of Project X and Project Y, explain why, given that both projects return total cash flows of $90,000 over the four years
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