a. what is the project's NPV and IRR? b. Is the project finacially acceptable?...
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a. what is the project's NPV and IRR?
b. Is the project finacially acceptable? explain your answer.
I need clear explanation of question A on excel. thanks
Cox Healthcare Clinic is evaluating a Capital Budgeting project that costs $52,125 and has expected net cash flows of $12,000 per year for eight years. The first inflows occur one year after the cost outflow and the project has a cost of capital of 12 percent. Below is a table of cash flows for the Capital Budget project: Year Cumulative Cash Flow Annual Cash Flow -$52,125 -$52,125 0 1 $12,000 -$40,125 2 $12,000 -$28,125 3 $12,000 -$16,125 4 $12,000 -$4,125 $12,000 $7,875 5 $19,875 6 $12,000 7 $12,000 $31,875 $43,875 GO $12,000
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