Question-highland outpatient center

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Question: Highland Outpatient Center is evaluating two investment projects, each of which requires an up-front expenditure of $1.5 million. The projects are expected to produce the following ne cash inflows:

Year Project A Project B

1 $500,000 $2,000,000,

2 $1,000,000 $1,000,000

3 $2,000,000 $600,000

1. What is each project's IRR?

2. What is each project's NPV, if the cost of capital is:

a. 10%

b. 5%

c. 15%

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Reference no: EM131759977

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