Assume that you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investmen

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Assume That You Are The Cfo At Porter Memorial Hospital The Ceo Has Asked You To Analyze Two Proposed Capital Investmen 1 (62.91 KiB) Viewed 9 times

Assume that you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments--Project X and Project Y. Each project requires a net investment outlay of $10,000, and the cost of capital for each project is 12 percent. The project's expected net cash flows are as follows: Year 01234 Project X Project Y -$10,000 -$10,000 $6,500 $3,000 $3,000 $1,000 $3,000 $3,000 $3,000 $3,000 What is the payback period for Project X? 2.20 years What is the payback period for Project Y? 3.40 years Note: Format is x.xx years What is the NPV for Project X? $966..35 What is the NPV for Project Y? ($887.95) Note: Format is $x,xxx if positive; ($x,xxx) if negative. What is the IRR for Project X? 18.2% What is the IRR for Project Y? Note: Format is xx.xx% if positive; -xx.xx% if negative. 7.85% Based on your analysis, which project is financially acceptable? X Note: Enter X or Y