I NEED THE FORMULAS PLEASE

Service Line Expansion The Tri-Counties Regional Clinic is considering investing in a new service line. The expansion project will cost $8 million and is expected to generate the following cash flows. If the clinic's cost of funds is 8%, is the project justified on a NPV basis? Year 0 Cash Inflows from New Services Cash Outflows for Increased Costs Net Cash Inflows / (Outflows) Year 1 $2,900,000 ($750,000) $2,150,000 Year 2 $3,000,000 ($800,000) $2,200,000 Year 3 $3,100,000 ($850,000) $2,250,000 Year 4 $3,200,000 ($900,000) $2,300,000 Total $12,200,000 ($11,300,000) $900,000 ($8,000,000) ($8,000,000) Annual Interest Rate Year 1 Year 2 Year 3 Year 4 Today 0 1 2 3 4 Time (t) Net Cash Infows/(Outflows) Present Value Total Present Value