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Given the following data, complete the Cash Flow Analysis for Lehman Hospital: Lehman Hospital is considering the purchase of a new MRI machine, which costs

Given the following data, complete the Cash Flow Analysis for Lehman Hospital:

Lehman Hospital is considering the purchase of a new MRI machine, which costs $3,000,000, with no salvage value and an expected life of five years. The MRI machine is expected to have fixed operating costs of $350,000 per year and variable operating costs of $10 per procedure. The equipment is expected to be used 20 times per day for 300 days a year, for each year of the life of the machine. The average billing price for one procedure is $100. All costs and revenues are expected to increase at a 5 percent inflation rate after the first year. The corporate cost of capital is 10%. (30 points) I need to know how everything is calculated...formulas please! Can this be done on excel?

(a)

Year

0

1

2

3

4

5

Equipment Cost

Net Revenues

Fixed Operating Costs

Variable Operating Costs

Net Operating Income

Equipment Salvage Value

Net Cash Flow

NPV manual calculation.

Corporate Cost of Capital

NPV

IRR

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