Northeast Hospital is analyzing a potential project for a new outpatient center Please use the following facts to create a 5-year projection of cash flow for the proposed center. Please create your full income statement first to include all cash and non-cash expenses Calculate the projects NPV, IRR, MIRR, Payback Period (not discounted). Using these calculations, do you recommend that they should proceed with this project? Explain your answer Year 1 Year 2 Year 3 Year 4 Year 5 Total projected Visits 52500 Average Revenue per visit $75.00 Average Variable Cost per Visit $50.00 Total Fixed Costs $500,000.00 Purchase Price for Equipment $4,500,000.00 Monthly Rental Cost to Occupy the New Site $5,000.00 Salvage Values of the Equipment (end of Year 5) $750,000.00 Corporate Tax Rate 40% Cost of Capital 8% Other Assumptions 1) Projected Visits are Expected to increase by 10% in Year 2, 5% in Year 3 and 3% each Year thereafter 2) Negotiation with payers indicate that revenue rate (ie payment per visits) will increase by 2% each year and 5% in year 5 3) Variable Costs are expected to rise at a rate of 2% per year 4) Fixed Costs are expected to rise at a rate of 1% per year 6) Rent rates will be increased by 2.5% at the end of each year 6) The equipment will depreciate based on the straight-line method of depreciation, a 5-year estimated life and the equipment will be sold at salvage value at the end of year 5 7) Tax rate will remain constant for the entire 5-year Period and do not assume any tax loss carryforward