10.2. California Imaging Center, a not-for-profit business, is evaluating the purchase of new diagnostic equipment. The equipment, which costs $600,0oo, has an expected life of five years and an estimated salvage value of $200,000 at that time. The equipment is expected to be used 15 times a day for 250 days a year for each year of the project's life. On average, each procedure is expected to generate $80 in cash collections during the first year of use. Thus, net revenues for Year 1 are estimated at 15 x 250 x $80 $300,ooo. Labor and maintenance costs are expected to be $100,000 during the first year of operation, while utilities will cost another $10,ooo and cash overhead will increase by $5,000 in Year 1. The cost for expendable supplies is expected to average $5 per procedure during the first year. All costs and revenues are expected to increase at a 5 percent inflation rate after the first year. The center's corporate cost of capital is 10 percent