Calexico Hospital plans to invest in a new MRI machine. The cost of the MRI is $1.4 million. The MRI has an economic life of 5 years, and it will be depreciated over a five-year life to a $200,000 salvage value. Additional revenues attributed to the new MRI will be in the amount of $1.5 million per year for 5 years.Additional operating expenses, excluding depreciation expense, will amount to $1 million per year for 5 years. Over the life of the machine, net working capital will increase by $30,000 per year for 5 years.

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a. Assuming that the hospital is a non-profit entity, what is the project's net present value (NPV) at a discount rate of 8%, and what is the project's IRR?b. Assuming that the hospital is a for-profit entity and the tax rate is 30%, what is the project's NPV at a cost of capital of 8%, and what is the project's IRR?

This is what I have,

Year Cash Flow Cummulative Cash Flow Year 0 $(1,400,000) $(1,400,000) Year 1 $530,000 $(870,000) Year 2 $530,000 $(340,000) Year 3 $530,000 $190,000 Year 4 $530,000 $720,000 Year 5 $530,000 $1,250,000 25.88%