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The director of capital budgeting for Big River Health Systems Inc. has estimated the following cash flows (in thousands of dollars) for a proposed new
The director of capital budgeting for Big River Health Systems Inc. has estimated
the following cash flows (in thousands of dollars) for a proposed new service:
Year Expected Net Cash Flow ($)
0 (100)
1 70
2 50
3 20
The project's opportunity cost of capital is 10 percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's IRR?
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