A hotel expects to accommodate 50,000 guests this year while operating at 100% capacity. Forecasted demand for the next three years is 55,000 guests next year followed by a 5,000 increase in each of the succeeding years. If the management plans to expand the capacity up to 65,000, it will have to spend $ 1 million at the end of this year (year 0). Calculate the cash flows and the Net Present Value (NPV) for this project for the next three years if the profit per customer is $ 50?

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