Question: Assigned Problem 1 Winston Clinic is evaluating a project that costs $52,125 and has expected net cash flows of $12,000 per year for eight years.
Assigned Problem 1 Winston Clinic is evaluating a project that costs $52,125 and has expected net cash flows 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.l a. What is the project's payback? b. What is the project's NPV? Its IRR? c. Is the project financially acceptable? Explain your answer ANSWER Table of cash flows for the project: Annual Cumulative Cash Flow Cash Flow Year 3 4 5 8 Paybackk b. NPY IRR C
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