Determine the cash inflows and outflows for each year_NPV_Answer

1. Determine the cash inflows and outflows for each year.

2. Evaluate the capital project by calculating the following metrics:

a. net present value (NPV)

b. internal rate of return (IRR)

c. modified internal rate of return (MIRR)

d. payback period e.discounted payback period

3.Indicate whether the project is acceptable, assuming Jiranna has a corporate policy

of not accepting projects that take more than 3.5 years to pay for themselves, and

assuming an 11% cost of capital. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Nurse Triage

Salaries $523,800 $549,990 $577,490 $606,364 $636,682 $668,516 Forecasted ER Cost

Reductions $400,000 $800,000 $848,000 $900,577 $955,512 $1,013,798 New IT

Specialist's Salary $150,000 $154,500 $159,135 $163,909 $168,826 $173,891

Costs of Facility Renovations $30,000 $- $- $- $- $-

Necessary Capital Equipment Purchases $117,000 $3,510 $3,510 $3,510

$3,510 $3,510 Net Cash Flow: Present Values of Net Cash Flows:

Net Present Value: IRR: MIRR: Payback Period (# XXXXX):

Discounted Payback Period (# XXXXX):