Capital budgeting for Big Sky Health Systems

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The director of capital budgeting for Big Sky Health Systems Inc has estimated the following cash flows ( in thousands of dollars) for a proposed new service.

Year              Expected net cash flow

0                        ($100)

1                        70

2                        50

3                      20

The project's opportunity cost of capital is 10%

a. What is the project's payback period?

b. What is the project's NPV?

c. What is the project's IRR?

Reference no: EM13890293

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