Calculate a DCF value for the following PPP project. A public hospital wants to set up a diagnostic centre. As the hospital does not have sufficient funds to purchase the necessary equipment, it enters a PPP agreement with a supplier of such equipment. It is more than just a lease, as the supplier will take care of the technical operation of the equipment. The hospital has to pay an annual fee of CU 500,000 over the next 10 years. It will generate annual revenue of CU 550,000 by charging the use of the diagnostic facilities to the patients. It may purchase the whole equipment for CU 2,000,000 at the end of year 10 and then operate it at an annual cost of CU 200,000 for another 5 years. The revenues will be the same during this second period. The discount rate is 5 per cent.