MaxiCare Corporation, a not$-$for$-$profit organization, specializes in health care for senior citizens. Management is considering whether

to expand operations by opening a new chain of care centers in the inner city of large metropolitan areas. For a new facility, initial cash

outlays for lease, renovations, net working capital, training, and other costs are expected to be about $$15$ million. The corporation

expects the cash inflows of each new facility in Year $1$ to equal zero. Net cash inflows are expected to increase to $$1$ million in each of

years $2$ and $3$;$$2\mathrm{.}5$ million in year $4$; and $$3$ million in each of years $5$ through $10.$ The lease agreement for the facility will expire at the

end of year $10,$ and MaxiCare expects the cost to close a facility will pretty much exhaust all cash proceeds from the disposal. Cost of

capital for MaxiCare is estimated as $12\%.$ Assume that all cash flows occur at year end.

Required:

Compute $($using the built$-$in NPV function in Excel$)$ the net present value $($NPV$)$ for the proposed investment. $($Negative amount

should be indicated by a minus sign. Enter your answer in whole dollars, not in millions, rounded to nearest whole dollar.$)$

Compute $($using the built$-$in IRR function in Excel$)$ the internal rate of return $($IRR$)$ for the proposed investment. $($Round your final

answer $2$ decimal places.$)$

What is the breakeven selling price for this investment, that is$,$ the price that would yield an NPV of $$0?($Use the Goal Seek function

in Excel to determine the breakeven selling price. The following online tutorial may be helpful to you: Goal Seek Tutorial$)($Enter your

answer in whole dollars, not in millions, rounded to nearest whole dollar.$)$

Answer is complete but not entirely correct.