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

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

a. What is the project’s payback?

b. What is the project’s NPV? Its IRR? Its MIRR?

c. Is the project financially acceptable? Explain your answer.

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Related Book For answer-question

Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management

ISBN: 9781640551862

7th Edition

Authors: Kristin L. Reiter, Paula H. Song

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Question Posted: Mar 14, 2024 01:00 AM

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

Question:

Step by Step Answer:

a Calculating the projects payback period To calculate the payback period we add up the cash inflows until we recover the initial investment Initial I...View the full answer

Gapenski's Healthcare Finance An Introduction To Accounting And Financial Management

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