Healthcare Clinic is evaluating a Capital Budgeting project that
costs $52,125 and has expected net cash...
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Finance
Healthcare Clinic is evaluating a Capital Budgeting project thatcosts $52,125 and has expected net cash flows of $12,000 per yearfor eight years. The first inflows occur one year after the costoutflow and the project has a cost of capital of 12 percent.
Below is a table of cash flows for the Capital Budgetproject:
Year
Annual CashFlow
Cumulative CashFlow
0
-$52,125
-$52,125
1
$12,000
-$40,125
2
$12,000
-$28,125
3
$12,000
-$16,125
4
$12,000
-$4,125
5
$12,000
$7,875
6
$12,000
$19,875
7
$12,000
$31,875
8
$12,000
$43,875
Pleaseshow your work for entering info in excel
What is the project's payback
What is the project's NPV
What is the IRR
Is the project financially acceptable? Explain your answer.
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