A hospital is planning to build a nonprofit urgent care center next to its emergency department (ED) to siphon off nonemergent cases. Th ED frequently operates beyond its designed capacity, creating patient and employee dissatisfaction. It is expected that the ED will not lose any patients if the center is built due to patients leaving before treatment is rendered and a growing demand for ED services. The center is expected to require a $4 million outlay in year 0. No depreciation expense is needed since the center is nonprofit and reaps no tax benefit. The following table provides the best case , most likely, and worst-case estimated for patient quantity, reimbursement, supply and other expenses per encounter, and growth rates for patient quantity, reimbursement, and expenses beginning in year 1. The ED and finance departments have estimated that the center will need five physicians earning an average of $240,000 in salaries and benefits, twelve nurses at $84,000 each, and nine other staff at $48,000 each. Build a five year capital budget analysis and calculate the net present value (NPV) and internal rate of return (IRR). In addition, calculate the NPVs and IRRs at best-and worst-case volume with all other variables at heir most likely estimates.

Assumptions	Most Likely	Best Case	Most Likely	Worst Case
Quantity	62,600	68,900	62,600	56,400
Price	$100.00	$110	$100	$90
Supplies	$30.00	$11.00	$12.50	$14.00	per unit (v)
Other	$10	$9	$10	$11	per unit (v)
Discount rate	6.0%	5.0%	5.0%	5.0%	constant
Growth rate, output	1.0%	3.0%	2.0%	1.0%
Inflation rate, output prices	2.0%	4.0%	2.0%	0.0%
Inflation rate, expenses (not depr)	3.0%	1.0%	3.0%	5.0%
Tax rate	35.0%	35.0%	35.0%	35.0%	constant

below you can see part of the answer received from course hero earlier. However, I do not understand how I need to compute these numbers to obtain the results for year 2,3,4, and 5. I see the steps but I still do not know what numbers I need to compute in those formulas. Please include numbers in the calculation for each year instead of a formula because I do not have any idea how to do it. Thank you in advance.

Year 2-5: Revenue: Quantity * Price * (1 + Growth rate, output)"(Year - 1) * (1 + Inflation rate, output prices)"(Year - 1) = Revenue Expenses: Personnel costs * (1 + Inflation rate, expenses)(Year - 1) = Personnel expenses Supplies * (1 + Inflation rate, expenses)"(Year - 1) = Supplies expenses Other expenses * (1 + Inflation rate, expenses)"(Year - 1) = Other expenses Total expenses = Personnel expenses + Supplies expenses + Other expenses Net cash flow = Revenue - Total expenses Discounted cash flow = Net cash flow / (1 + Discount rate)^(Year - 1) Using the most likely estimates from the table, we can calculate the cash flows and discounted cash flows for each year: Year 0: -$4,000,000 Year 1: $1,436,792 Year 2: $1,771,155 Year 3: $2,126,325 Year 4: $2,503,034 Year 5: $2,902,086