Assigned Problem 1 Winston Clinic is evaluating a project that costs $52,125 and has expected net cash flows of $12,000 per year for eight years. The first inflow occurs one year after the cost...

Assigned Problem 1

Winston Clinic is evaluating a project that costs $52,125 and has expected net cash flows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12 percent.

a.What is the project's payback?


b.What is the project's NPV?Its
IRR?


c.Is the project finally acceptable? Explain your answer.