=+E15-20 Net present value method and internal rate ofreturn method Ob] 2 y

a. ($6,606)

Buckeye Healthcare Corp. is proposing to spend $96,030 on an eight-year project that has esti¬

mated net cash flows of $18,000 per each ofthe eight years.

a. Compute the net present value, using a rate ofreturn of 12%. Use the table ofpresent values of an annuity of $ 1 in the chapter.