1 The director of capital budgeting for St Luke’s Hospital has estimated the following cash flows in

1 The director of capital budgeting for St Luke’s Hospital has estimated the following cash flows in thousands of dollars for a proposed new services:

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Year Expected cash flow

0 ($100,000)

1 $70,000

2 $50,000

3 $20,000

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The project’s cost of capital is 10 percent

1 What is the project’s payback period?

2 What is the project’s NPV?

3 What is the project’s IRR