Hello! For Fundamentals of Healthcare finance (2nd edition), Chapter 10, Problem 2ECP....There's only part a and b, it's missing part c in the answer. This is part C below, could you answer it please:

c. Assume the project is assessed to have high risk and California Imaging Center adds or subtracts 3 percentage points to adjust for project risk. Now, what is the projects NPV? Does the risk assessment change how the projects IRR is interpreted?

Below is the full question but I only need part C to be answered, thank you:

California Imaging Center, a not-for-profit business, is evaluating the purchase of new diagnostic equipment. The equipment, which costs $600,000, has an expected life of five years and an estimated salvage value of $200,000 at that time. The equip- ment is expected to be used 15 times a day for 250 days a year for each year of the projects life. On average, each procedure is expected to generate $80 in cash collec- tions during the first year of use. Thus, net revenues for Year 1 are estimated at 15 x 250 x $80 = $300,000.

Labor and maintenance costs are expected to be $100,000 during the first year of operation, while utilities will cost another $10,000 and cash overhead will in- crease by $5,000 in Year 1. The cost for expendable supplies is expected to average $5 per procedure during the first year. All costs and revenues are expected to in- crease at a 5 percent inflation rate after the first year.

The centers corporate cost of capital is 10 percent. a. Estimate the projects net cash flows over its five-year estimated life. (Hint: Use

the following format as a guide.)

Year 012345

Equipment cost Net revenues Less: Labor/maintenance costs

Utilities costs Supplies Incremental overhead Operating income

Equipment salvage value Net cash flow

b. What are the projects NPV and IRR? (Assume for now that the project has average risk.)

c. Assume the project is assessed to have high risk and California Imaging Center adds or subtracts 3 percentage points to adjust for project risk. Now, what is the projects NPV? Does the risk assessment change how the projects IRR is interpreted?