14.6 The director of capital budgeting for Big Sky Health Systems, Inc., has estimated the following cash flows in thousands of dollars for a proposed new service:
Year Expected Net Cash Flow
0 ($100) 1 70 2 50 3 20
The project’s cost of capital is 10 percent.
a. What is the project’s payback period?
b. What is the project’s NPV?
c. What is the project’s IRR? Its MIRR?
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As nothing was mentioned excel is used.
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