Question: Net Present Value Method and Internal Rate of Return Method for a service company Buckeye Healthcare Corp. is proposing to spend $117,936 on a five-year

 Net Present Value Method and Internal Rate of Return Method for

Net Present Value Method and Internal Rate of Return Method for a service company Buckeye Healthcare Corp. is proposing to spend $117,936 on a five-year project that has estimated net cash flows of $28,000 for each of the five years. a. Compute the net present value, using a rate of return of 10%. Use the table of present value of an annuity of $1 presented above. If required, round to the nearest dollar. b. Based on the analysis prepared in part (a), is the rate of return (1) more than 10%, (2) 10%, or (3) less than 10% ? c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present value of an annuity of $1 presented above % Feedback T Check My Work a. Multiply the annual net cash flows by the present value of an annuity factor for 5 periods at 12%, Exhibit 5 . Subtract the amount to be invested. b. What does a negative net present value indicate

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