Question: Assigned Problem 1 Winston Clinic is evaluating a project that costs ( mathbf { $ 5 2 , 1 2 5 }

Assigned Problem 1
Winston Clinic is evaluating a project that costs \(\mathbf{\$ 52,125}\) 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.
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
a.
Table of cash flows for the proiect:
Assigned Problem 1 Winston Clinic is evaluating a

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