we are trying to decide which assisted living facility you should buy based upon cash flows as
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Question:
we are trying to decide which assisted living facility you should buy based upon cash flows as follows (in millions):
| Project | CF 0 | CF 1 | CF 2 | CF 3 | CF 4 |
| FOP Valley | -$30 | $11 | $2 | $4 | $45 |
| Retire Nole | -$15 | $0 | $0 | $0 | $40 |
| Pass Away Lots | -$10 | $5 | $5 | $5 | $5 |
Your cost of capital is 16%.
In the Excel Template, use the tab called "Decision Rules". Calculate the NPV, IRR, and Profitability Index for each project. You have a budget constraint of $50million. Which project(s) should you choose and (briefly) why?
Expert Answer:
To decide which assisted living facility to buy based on cash flows we need to calculate the NPV ... View the full answer
Related Book For 
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
