Solution-What is the internal rate of return or IRR for the

What is the internal rate of return or IRR for the project

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Reference no: EM132483157

Problem 1. If a physician deposits $34,000 today into a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of this investment:

a. 3 years from now

b. 6 years from now

c. 9 years from now

d. 12 years from now

Problem 2. The Chief Financial Officer of a hospital needs to determine the present value of $150,000 investment received at the end of year 5. What is the present value if the discount rate is:

a. 3%

b. 6%

C. 9%

d. 12%

Problem 3. Calexico Hospital plans to purchase a new MRI machine for 1.8M. The expected cash flow for each of the five year period is $320,000, $460,000, $485,000, $515,000, and $550,000 for the five years. What is the internal rate of return or IRR for the project?

Problem 4. Determine the Net Present Value for Problem 3 with a rate of 10%. Do you proceed or not with the project?

Problem 5. Determine the payback period for Problem 3.

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What is the internal rate of return or IRR for the project

Reference no: EM132483157

Reference no: EM132483157

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