Winston Clinic is evaluating a project that costs $52,125 and has expected net cash inflows of $12,000

Question:

Winston Clinic is evaluating a project that costs $52,125 and has expected net cash inflows of $12,000 per year for 8 years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12%.

A. What is the projects payback?

B. what is the projects net present value? Its inernal rate of return? And its modified internal rate of return?

C. Is the project finacially acceptable? Explain your answer

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...