Which project is financially acceptable

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Reference no: EM131312313

Assume you are the Chief Financial Officer at Porter Memorial Hospital. The CEO has asked you to analyze two proposed capital investments - Project X & Project Y. Each project has a net investment outlay of $10,000 and the opportunity cost for each project is 12%. You have calculated each project's payback, net present value & internal rate of return as follows:

Project X Project Y

Payback 5.25 years 3.01 years

NPV -$101 $567

IRR 11.42% 15.6%

Which project is financially acceptable?

Reference no: EM131312313

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