Question - 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: questions below
|
Year
|
Expected Net Cash Flow
|
|
0
|
($100)
|
|
1
|
$70
|
|
2
|
$50
|
|
3
|
$20
|
The project's cost of capital is 10 percent.
a. What is the project's payback period?
b. What is the project's NPV?
c. What is the project's IRR? MIRR?