Chapter 7 Homework (2) - Chapter 7#11 Marleboro Memorial...

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Chapter 7 #11 Marleboro Memorial Hospital is expecting its new cancer center to generate cash flow. a) Payback – 3 years b) NPV @ 12% -- > $17,284,282.65 c) IRR = 33.98% NPV @ 16% -- > $12,844,148.57 d) At both levels, the project should be accepted as the NPV is positive. #12 Buxton Community is expecting its new dialysis unit to general cash flow. a) Payback – 3.36 years b) NPV @ 11% -- > $8,818,797.15 c) IRR = 31.35% NPV @ 20% -- > $3,955,761.32 d) At both levels, the project should be accepted as the NPV is positive. #13 Letterman Hospital expects Projects A & B to generate cash flow. a) @15% NPV(A) = $1,194.95 NPV(B) = $377.86 b) @5% NPV(A) = $1,928.77 NPV(B) = $1,557.41 c) At each level of cost, Project A provides a higher NPV of choice.
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Unformatted text preview: #14 Castle Rock Medical Center expects Projects X & Y to generate cash fow. a) @13% NPV(X) = $3,184.39 NPV(Y) = $1,577.85 b) @8% NPV(X) = $4,145.94 NPV(Y) = $2,993.34 c) At each level oF cost, Project X provides a higher NPV oF choice. #15 Goodbar PracTce expects Projects 1 & 2 to generate cash fow. a) Payback(1) = 4 years Payback(2) = 3.8 years b) IRR(1) = 17.80% IRR(2) = 9.91% c) NPV(1) = $424.83 NPV(2) = ($195.22) #16 MarTn Medical expects Alpha & Beta Project to generate cash fow. a) Payback(1) = 3.64 years Payback(2) = 4 years b) IRR(1) = 24.24% IRR(2) = 7.93% c) NPV(1) = $8,333.48 NPV(2) = ($3,401.51)...
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