$7.$hCHAPTER $14$: CAPITAL BUDGETING

Homework Problem $4\mathrm{.}7$

Assume that you are the COO at Cactus Valley Medical Center. The CEO has asked

you to analyze two proposed capital investments$$Project $x$ and Project Y$.$ Each

project requires a net investment outlay of $$25,000,$ and the cost of capital for each

project is $7\mathrm{.}5$ percent. The expected net cash flows for each project are as follow:

a$.$ Calculate each project's payback period, net present value $($NPV$),$ and internal rate of return $($IRR$).$

b$.$ Which project$($s$)$ is$/$are financially acceptable? Explain your answer.

help solve these questions, with steps on how to use it with inputting the formulas into Excel