Question: A hospital CEO is evaluating three projects and has asked one of his analysts to compute the Net Present Value NPV for each of them
A hospital CEO is evaluating three projects and has asked one of his analysts to compute the Net Present Value NPV for each of them to help him make his decision. The projects include: A new MRI center NPV $4,223,000 A same-day surgery center NPV 3,934,000 A new hospice center NPV - 1,300,000 Based only on the NTE for each of these projects, which one is the CEO most likely to pick for funding? a. The MRI Center as it has a positive Net Present Value and the highest NPV of the three projects. b. The Same-Day Surgery Center as it has a moderate Net Present Value that's positive. c. The new Hospice Center as it has a negative Net Present Value. d. None of the above as Net Present Value won't tell him much when comparing the three projects
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