Solution-Which project is financially acceptable

Which project is financially acceptable

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Reference no: EM133072727

Assume you are the chief financial officer at Lehman Memorial Hospital. The CEO has asked you to analyze two proposed capital investment Project X and project Y each project requires a net investment outlay of $10,000 and the opportunity cost of capital for each project is 14% the project's expected net cash flows are as following:

Year	Project x	Project Y
0	(10,000)	(10,000)
1	6,500	3,000
2	3,000	3,000
3	3,000	3,000
4	1,000	3,000

Calculate each project's payback, NPV and IRR.

Which project is financially acceptable? Explain your answer.

Reference no: EM133072727

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Which project is financially acceptable

Reference no: EM133072727

Reference no: EM133072727

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