ear 0 1 2 Expected net cash flow ($100,000) $70,000 $50,000 ative a. b. C.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The supervisor of capital budgeting for Le Vie Clinic has estimated the following cash flow of dollars for a proposed new clinical service.  

Please show your  for letters a, b,c and d. 

Year
0
1
2
3
Expected net cash flow
($100,000)
$70,000
$50,000
$20,000
The project's cost of capital is 10%.
Complete letters a, b, and c, showing your calculations.
d. What is the payback period?
Cumulative Cash Flows
a.
b.
C.
Transcribed Image Text:Year 0 1 2 3 Expected net cash flow ($100,000) $70,000 $50,000 $20,000 The project's cost of capital is 10%. Complete letters a, b, and c, showing your calculations. d. What is the payback period? Cumulative Cash Flows a. b. C.
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