Exercise $12-38($Algo$)$ Uneven Cash Flows; NPV; Sensitivity Analysis $[$LO $12-4,12-5]$

MaxiCare Corporation, a not$-$for$-$profit organization, specializes in health care for senior citizens. Management is considering whether to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash outlays for lease, renovations, net working capital, training, and other costs are expected to be about $$19$ million. The corporation expects the cash inflows of each new facility in Year $1$ to equal zero. Net cash inflows are expected to increase to $$3\mathrm{.}0$ million in each of Years $2$ and $3$; $$2\mathrm{.}5$ million in Year $4$; and $$3\mathrm{.}0$ million in each of Years $5$ through $10.$ The lease agreement for the facility will expire at the end of Year $10,$ and MaxiCare expects the cost to close a facility will pretty much exhaust all cash proceeds from the disposal. Cost of capital for MaxiCare is estimated as $12\%.$ Assume that all cash flows occur at year end.

Required:

Compute $($using the built$-$in NPV function in Excel$)$ the net present value $($NPV$)$ for the proposed investment.

Note: Negative amount should be indicated by a minus sign. Enter your answer in whole dollars, not in millions, rounded to nearest whole dollar.

Compute $($using the built$-$in IRR function in Excel$)$ the internal rate of return $($IRR$)$ for the proposed investment.

Note: Round your final answer $2$ decimal places. $($i$.$e$.\mathrm{.}1234=12\mathrm{.}34\%).$

What is the breakeven selling price for this investment, that is$,$ the price that would yield an NPV of $$0?($Use the Goal Seek function in Excel to determine the breakeven selling price. The following online tutorial may be helpful to you: Goal Seek Tutorial.$)$

Note: Enter your answer in whole dollars, not in millions, rounded to nearest whole dollar.