Question: Kaiser Oakland Practice expects Projects 1 and 2 to generate the following cash flows: Project 1 (in '000s) Years Givens 1 Initial investment 2 Net
Kaiser Oakland Practice expects Projects 1 and 2 to generate the following cash flows: Project 1 (in '000s) Years Givens 1 Initial investment 2 Net operating cash flows 2 ($2,800) $300 $500 $800 S1,200 $2,000 Project 2 (in '000s) Givens Years 0 5 1 Initial investment ($5,000) 2 Net operating cash flows $1,300 $1.300 $1300 $1,300 $1,300 a. Determine the payback for both projects. b. Determine the IRR c. Determine the NPV at a cost of capital of 12 percent
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