Assignment 29554

These statements appear in the following. Pro forma Income Statement (000)
Time
t 1
t 2
t 3
t 4
Service Revenues (net)
$425
$500
$580
$700
Expenses
$400
$450
$525
$600
Depreciation Expense
$ 35
$ 35
$ 35
$ 35
Net Income
($ 10)
$ 15
$ 20
$ 65
What is the project’s IRR? Assume an initial investment of $175,000 and an appropriate discount rate of 6%. The hospital is operated as a not-for-profit facility.