Find out the payback for the new dialysis unit find out the

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Reference no: EM13478088

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? Explain.

Reference no: EM13478088

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