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The MHA Medical Center expects Project A and Project B to generate the following cash flows: Project A ( in thousands ) Year 0 1
The MHA Medical Center expects Project A and Project B to generate the following cash flows: Project A in thousands Year Initial investment $ Net operating cash flows $ $ $ $ $ Project B in thousands Year Initial investment $ Net operating cash flows $ $ $ $ $ Compute the payback for both projects. Show your calculation below: Compute the Net Present Value NPV manually ie do not use excel spread sheet for both projects at a cost of capital of Show your calculation below: Hint: Use the Present Value Factors presented Zelmans textbook pp Based on the results from two different calculations above, which project do you prefer to implement? Explain.
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