Reference no: EM13476999

Question . Buxton Community is expecting its new dialysis unit to generate the following cash flows:

Givens	Years	0	1	2	3	4	5
Initial investment		(10,000,000)
Net Operating Cash flows			1,500,000	2,000,000	4,000,000	7,000,000	14,000,000

 

a.       Determine the payback for the new dialysis unit

b.      Determine the NPV using a cost of capital of 11%

c.       Determine the NPV at cost of capital of 20% and compute the IRR

d.      At an 11% cost of capital, should the project be accepted?

At a 20% cost of capital, should the project be accepted?