Problem:
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.
Required:
Question 1: What is the project's payback?
Question 2: What is the project's NPV? It's IRR?
Question 3: Is the project financially acceptable? Explain your answer.
Note: Provide support for rationale.