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The director of capital budgeting for Big Sky Health Systems, Inc estimated the following cash flows in thousands of dollars for a proposed new service:
The director of capital budgeting for Big Sky Health Systems, Inc 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 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? Its MIRR?
Please show calcuations and formulas?
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