Problem $7\mathrm{.}11$ Alameda Hospital $-$ Determine the net present value at a cost of capital or $20\%,$ and compute the internal rate of return Givens Years $0123451$ Initial investment $($$$20,000,000)2$ Net operating cash flows $$2,000,000$ $$7,000,000$ $$11,000,000$ $$13,000,000$ $$25,000,0003$ Discount rate for part b $15\%4$ Discount rate for part c $20\%$ a$.$ Payback A Initial investment $[$Given $1]$ B Net operating cash flows $[$Given $2]$ C Cumulative cash flows $[$a$]$ Payback $=$ Year $3$ c$.$ Net Present Value and Internal Rate of Return H Present value interest factors for $20\%1/(1+$i$)$n $0\mathrm{.}83330\mathrm{.}69440\mathrm{.}57870\mathrm{.}48230\mathrm{.}4019$ I Present value of cash flowsb $[$BxH$]$ J Sum of present value of cash flows$[$Sum I$]$ K$1$ Net present value $[$A$+$J$]$ K$2$ Net present value function $($Excel$)$ L Internal rate of return a Initial investment $+$ cumulative sum of B through current year. b Present value interest factors in the exhibit have been calculated by formula, but are necessarily rounded for presentation. Therefore, there may be a difference between the number displayed and that calculated manually.