Please show all work & calculations.

California Health Center, for-profit hospital, is evaluating the purchase of new diagnostic equipment. The equipment, which costs $600,000, has an expected life of five years and an estimated pretax salvage value of $200,000 at that time. The equipment is expected to be used 15 times a day for 250 days a year for each year of the project's life. On average, each procedure is expected to generate $80 in collections, which is net of bad debts losses and contracual allowances, in it's first year of use. Thus, net revenues for year one are estimates 15 * 250 * $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 increase by $5,000 in year one. The cost for expendable supplies is expected to average $5 per procedure during the first year. All costs and revenues except depreciation are expected to increase at a 5 percent inflation rate after the first year. The equipment falls into the MARCS five-year class for tax depreciation and is subject to the following depreciation allowances: Year Allowance $ 1 $ 600,000 120,000 192,000 2 $ 0.2 0.32 0.19 0.12 3 4 5 6 0.11 0.06 1.00 The hospital tax rate is 40 percent, and its corporate cost of capital is 10 percent. a. Estimate the project's net cash flows over its five-year estimated life. (Hint: Use following format as a guide.) 0 1 2 3 4 5 Equipment Costs Net Revenues Less: Labor/maintenance costs Utilities Costs Supplies Incremntal Overhead Depreciation Income Before Taxes Taxes (40%) Project Net Income Plus: Depreciation Plus: Salvage Value Net Cash Flow Tax Liability Taxes 40% of 164000 b. What are the project's NPV and IRR? (Assume for now that the project has average risk) $(600,000) 10% Project cost of capital Cash Flow 0 Cash Flow 1 Cash Flow 2 Cash Flow 3 Cash Flow 4 Cash Flow 5