Calculate each projects payback NPV and IRR

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Reference no: EM13890273

Assume you are the CFO at Porter Memorial Hospital. The CEO has asked you to analyze 2 proposed capital investments- Project X and Project Y. Each project requires a net investment outlay of $ 10,000, and the opportunity cost of capital for each project is 12%. The projects expected net cash flows are as follows.

Year Project X Project Y

0 ($10,000) ($10,000)

1 6,500 3,000

2 3,000 3,000

3 3,000 3,000

4 1,000 3,000

a. calculate each project's payback, NPV and IRR.

b. Which project or projects is financially acceptable. Explain your answer.

Reference no: EM13890273

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