Indio Regional Clinic has been asked to provide exclusive healthcare services for the Coachella Music Festival. Although flattered by the request, the clinics managers want to conduct a financial analysis of the project. There will be an up-front cost of $160,000 to get the clinic in operation. Then, a net cash inflow of $1 million is expected from operations in each of the next two years. However, the clinic has to pay the organizers a fee for the marketing value of the opportunity. This fee, which must be paid at the end of the second year, is $2 million.

1. What are the cash flows associated with the project?
2. Assuming a project cost of capital of 10 percent, what is the projects NPV?

(I will thumbs up all answers)