Using the NPV function in Excel obtain the NPV of $$499,202$ as shown in Exhibit $7\mathrm{.}6$ in your text $-$ highlight your answer Exhibit $7\mathrm{.}5$ Computation of NPV for the satellite clinic Givens: Years $01234561$ Initial investment $($$$1,000,000)2$ Net revenue $$400,000$ $$550,000$ $$800,000$ $$900,000$ $$1,100,000$ $$1,370,0003$ Cash operating expense $$200,000$ $$300,000$ $$500,000$ $$550,000$ $$650,000$ $$850,0004$ Annual depreciation $$145,000$ $$145,000$ $$145,000$ $$145,000$ $$145,000$ $$145,0005$ Salvage value $($end of year $6)$ $$130,0006$ Cost of capital $10\%$ Years $0123456$ A Initial investment Given $1($$$1,000,000)($$$1,000,000)$ B Net revenue Given $2$ $$400,000$ $$550,000$ $$800,000$ $$900,000$ $$1,100,000$ $$1,370,000$ $$200,000$ C Less: cash operating expenses Given $3200,000300,000500,000550,000650,000850,000$ $$250,000$ D Less: depreciation expense Given $4145,000145,000145,000145,000145,000145,000$ $$300,000$ E Net operating income B $-$ C $-$ D $55,000105,000155,000205,000305,000375,000$ $$350,000$ F Add: depreciation expense Given $4145,000145,000145,000145,000145,000145,000$ $$450,000$ G Net operating cash flows E $+$ F $200,000250,000300,000350,000450,000520,000$ $$650,000$ H Add: sale of salvage value Given $5\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_130,00023\%$ I Project cash flows G $+$ H $$200,000$ $$250,000$ $$300,000$ $$350,000$ $$450,000$ $$650,000$ J Cost of capital Given $610\%10\%10\%10\%10\%10\%$ K Present value interest factorsa $1/(1+$ i$)$n $0\mathrm{.}90910\mathrm{.}82640\mathrm{.}75130\mathrm{.}68300\mathrm{.}62090\mathrm{.}5645$ L Annual PV of cash flows I x K $$181,818$ $$206,612$ $$225,394$ $$239,055$ $$279,415$ $$366,908$ M PV of cash flows Sum L $$1,499,202$ N Net present value A $+$ M $$499,202$ aPresent value interest factors in the table have been calculated by formula but are necessarily rounded for presentation. Therefore, there may be a difference between the number displayed and that calculated manually.