Alameda Hospital is expecting its new cancer center to generate the following cash flows:
a. Determine the payback for the new cancer center.
b. Determine the net present value using a cost of capital of 15 percent.
c. Determine the net present value at a cost of capital of 20 percent, and compute the internal rate of return.
d. At a 15 percent cost of capital, should the project be accepted? At a 20 percent cost of capital, should the project be accepted? Explain.
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