Buena Vision Clinic is considering an investment that requires an outlay of $$600,000$ and promises a net cash inflow one year from now of $$810,000.$ Assume the cost of capital is $10$ percent,

The present value tables provided in Exhibit $198\mathrm{.}1$ and Exhibit $19$ B$.2$ must be used to solve the following problems.

Required:

Break the $$810,000$ future cash inflow into the three components shown below. Enter all your answers as positive amounts.

a$.$ The return of the original investment

b$.$ The cost of capital

c$.$ The profit earned on the investment

Now, compute the present value of the profit earned on the investment.

$$

Compute the NPV of the investment. When required, round your answer to the nearest dollar. $$

Compare this with the present value of the profit computed in Requirement $2.$ What does this tell you about the meaning of NPV$?$