The Assignment:

Use the"Week 10 Assignment Capital Budget Excel Template"to show your work, answer the following questions:

1. If a physician deposits $44,000 today into a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of this investment:
2. 3 years from now
3. 6 years from now
4. 9 years from now
5. 12 years from now
6. The Chief Financial Officer of a hospital needs to determine the present value of $230,000 investment received at the end of year 5. What is the present value if the discount rate is:
7. a.3%b.6%c.9%d.12%
8. Ford Hospital plans topurchase a newMRI machinefor1.5 million. The expected cash flows for each year of the five year period is
9. $330,000, $460,000, $495,000, $510,000, and $560,000 for the five years. What is the internal rate of return or the IRR for the project?
10. Determine the Net Present Value for Problem 3 with an interest rate of 10%. Do you proceed or not with the project?
11. Determine the Payback Period for Problem 3.