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You are a health system CEO. You have a manager of your orthopedic surgery service line and want to acquire a nearby practice and ASC.
You are a health system CEO. You have a manager of your orthopedic surgery service line and want to acquire a nearby practice and ASC. The manager is presenting to you and the C-suite. She projects the acquisition will cost $5,700,000. She then shows her ROI projects: an NPV of $650,000 and an IRR of 16.2%. Considering risk, the project's cost of capital was estimated at 12.5%. Select the correct statement(s) from the following options. the acquisition is financially acceptable because IRR exceeds the project cost of capital. the acquisition is financially acceptable because NPV is positive. the acquisition is not financially acceptable because NPV is positive. the acquisition is not financially acceptable because IRR exceeds the project cost
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