What is the internal rate of return or irr for the


Review this week’s Learning Resources. Reflect on concepts of time value of money, net present value, internal rate of return, and purchasing options. The Assignment: Use the “Week 10 Assignment Capital Budget Excel Template” to show your work, answer the following questions: 1. If a physician deposits $34,000 today into a mutual fund that is expected to grow at an annual rate of 8%, what will be the value of this investment: a. 3 years from now b. 6 years from now c. 9 years from now d. 12 years from now 2. The Chief Financial Officer of a hospital needs to determine the present value of $150,000 investment received at the end of year 5. What is the present value if the discount rate is: a. 3% b. 6% c. 9% d. 12% 3. Calexico Hospital plans to purchase a new MRI machine for 1.8M. The expected cash flow for each of the five year period is $320,000, $460,000, $485,000, $515,000, and $550,000 for the five years. What is the internal rate of return or IRR for the project? 4. Determine the Net Present Value for Problem 3 with a rate of 10%. Do you proceed or not with the project? 5. Determine the payback period for Problem 3.

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Financial Management: What is the internal rate of return or irr for the
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