Washington Community is expecting its new dialysis unit to generate the cash flows provided in the table below.

a) Determine the payback for the new dialysis unit.

b) Determine the NPV at a cost of capital of 20% and compute the internal rate of return

c) At 20 % cost of capital should the project be accepted? Explain.

Initial investment ($15,000,000) Net operating cash flows $2,000,000 $4,000,000 $5,000,000 $8,000,000 $16,000,000 Discount rate for - art 0 :1. Determine the payback for the new dialysis unit Pa back Years 0 1 2 3 4 5 Initial investment Net operating cash flows Cumulative cash flows 1). Determine the NPV at a cost of capital of 20% and compute the internal rate of return Years 0 1 2 3 4 5 Present value interest factors for 20% lb] Present value ofcash flows Sum of present value of cash flows Net present value Net present value function Internal rate 0 return c. At 20 % cost of capital should the project he accepted? Explain