a. Present value of annual net cash flow = $27000*3.605 = $97335
Less amount to be invested = 102357
Net present value = $-5022
b. Less than 12%
c. Present value of annuity factor = Investment / annual cash inflow
= 102357/27000 = 3.791
Internal rate of return = 10%
Net Present Value Method and Internal Rate of Return Method for a service company Buckeye Healthcare...
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