(Answered) Question - suppose that you as the chief financial officer

Accounting

Question - Suppose that you as the chief financial officer for Kindle Memorial Hospital and you were asked by the CEO to analyze two proposed capital investments - Project X and Project Y. Each project requires a net investment outlay of $10,000, and the cost of capital for each project is 12 percent. The projects' expected net cash flows are as follows:

Year	Project X	Project X
0	($10,000)	($10,000)
1	6,500	3,000
2	3,000	3,000
3	3,000	3,000
4	1,000	3,000

a. Calculate each project's payback period, net present value (NPV) and Internal rate of return (IRR).

b. Which project (or projects) is financially acceptable? Explain your answer briefly.

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