Dr. Hunter Thompson is considering opening an MAI clinic in Aspen. The business will operate for three years. The MFI machine, a GE, costs $2.6M and will be delivered immediately. The machine can be sold for $500,000 at the end of the threo years. Dr. Thompson estimates that he can perform 2,500 scans annually at $700 per scan for $1.75M of annual revenues. Dr. Thompson will lease office space in a local strip-mall and estimates that annual operating expenses will be $550,000 (including rent, salaries, and wages). Dr. Thompson plans to olfer credit to his customers. He expects to have about 45 days of sales in accounts recelvable, or about $300,000. He has arranged venture funding from Oscar Acosta who expects a return of 10% on his invested capital. The tax rate is 35%. Answer the following questions to determine if the project is worth undertaking. (Assume that depreciation is not tax deductiblo.) What are the initial cash flows? (Round to the nearest dollar and use proper signs) What are the operating cash flows in Year 1 ? (Round to the nearest dollar) What are the terminal cash flows? (Found to the nearest dollar) What are the terminal cash flows? (Round to the nearest dollar.) What is the NPV of the project? (Round to the nearest dollar.)