PLEASE IF YOU ARE GOING TO SOLVE THIS PROBLEM, CAN YOU SHOW STEP BY STEP OF EACH BREAKDOWN TO THE ANSWER. I WANT TO BE ABLE TO UNDERSTAND HOW THIS PROBLEM IS DONE... PLEASE DO NOT SOLVE IN EXCEL BUT USING FORMULA BREAKDOWNS SO I CAN UNDERSTAND. THANKS

PLEASE DO NOT SOLVE IF YOU WONT SHOW STEP BY STEP THE BREAKDOWNS TO GETTING TO THE ANSWER

THEIR ARE 3 PARTS TO THIS QUESTION, PLEASE SOLVE ALL 3.

New Castle clinic has been asked to provide exclusive health care services for next year's world health exposition. Although flattered by the request the clinic's managers want to conduct a financial analysis of the project. An upfront cost of$150,000 is needed to get the clinic ready. Then a net cash flow of $1 million is expected from operations in each of the two years of the exposition. However, the clinic has to pay the organizers of the exposition a fee for the marketing value of the opportunity. This fee, which must be paid at the end of the second year, is $2 million.

1. What are the net cash flows associated with the project?

2. What is the project's internal rate of return (IRR)?

3. Assuming a project cost of capital of 10%, what is the project's net present value (NPV)?