Washington Community is expecting its newdialysis unit to generate the following cash flows:

(see attached file for the financial information)

a. Determine the payback for the new dialysis unit.

b. Determine the NPV using a cost capital of 15 percent.

c. Determine the NPV at a cost of capital of 20 percent and compute the IRR.

d. At a 15 percent cost of capital, should the project be accepted? At a 20 percent cost of capital, should the project be accepted? Explain.