$7.$ Community Hospital is considering investing in a new MRI machine for their Radiology department. The cost of the machine is $$800,000,$ and the increased volumes are expected to return the following cash flows over a $5-$year period:

Year $1-$ $$125,000$

Year $2-$ $$230,000$

Year $3-$ $$250,000$

Year $4-$ $$300,000$

Year $5-$ $$350,000$

Total $=$ $$455,000$

If the prevailing rate of interest in the market is $7\mathrm{.}5\%,$ what is the Net Present Value $($NPV$)$ of the MRI project? Should Community Hospital make this investment? What is the Internal Rate of Return $($IRR$)$ for this project?