Chapter 7 Homework (2)

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

• Homework Help
• 1
• 100% (2) 2 out of 2 people found this document helpful

This preview shows page 1. Sign up to view the full content.

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.
This is the end of the preview. Sign up to access the rest of the document.

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)...
View Full Document

• Fall '15
• Grullon

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern