B D E H M 3 Week 5 - SQT 5 Questions Chapter 14 - Question 14.1 (in textbook) Problem 1 a. Seabreeze Clinic is evaluating a project that costs $162,000 and has expected net cash inflows of $45,000 per year for six years. (Round answers to 2 decimal places.) The cost of capital is 10%. What is the project's payback? What is the project's NPV? What is the project's IRR? Should the clinic adopt the project? Explain why or why not. b. c. d. Problem 2 Assume the CEO of Hot Desert Hospital has asked you to analyze two proposed capital investments: Project X and Project Y. Each project requires a net investment outlay of $10,000, and the cost of capital for each project is 8 percent. The project's expected net cash flows are as follows: Year Project X Project Y 0 ($10,000) ($10,000) 1 $4,500 $3,000 2 $4,000 $3,000 3 $2,000 $3,000 4 $1,500 $3,000 Calculate each project's payback period, net present value (NPV), and internal rate of return (IRR). b. Which project (or projects) is financially acceptable? Explain your answer. a. You mush show your calculations (i.e formulas in Excel) to receive credit. Merely providing a number will not suffice