Question: Project Cash Flow Estimation and Risk Analysis 12 points Great Lakes Clinic has been asked to provide exclusive healthcare services for next years World Exposition.

Project Cash Flow Estimation and Risk Analysis 12 points Great Lakes Clinic has been asked to provide exclusive healthcare services for next years World Exposition. Although, flattered by the request, the clinics managers want to conduct a financial analysis of the project. An up-front cost of $160,000 is needed to get the clinic in operation. Then, a net cash inflow of $2 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 $3 million.

What are the net cash flow associated with the project?

What is the projects IRR?

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