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?