Required:

1-3. Compute the net present value of the proposed outpatient clinic. (Round the discount factors to 3 decimal places. Negative Amounts should be indicated by a minus sign)

The tables below are for reference:

Allegheny Community Hospital is a nonprofit hospital operated by the county. The hospital's administrator is considering a proposal to open a new outpatient clinic in the nearby city of New Castle. The administrator has made the following estimates pertinent to the proposal. 1. Construction of the clinic building will cost $780,000 in two equal installments of $390,000, to be paid at the end of 20x0 and 20x1. The clinic will open on January 2, 20x2. All staffing and operating costs begin in 20x2. 2. Equipment for the clinic will cost $150,000, to be paid in December of 20x1 3. Staffing of the clinic will cost $800,000 per year. 4. Other operating costs at the clinic will be $200,000 per year. 5. Opening the clinic is expected to increase charitable contributions to the hospital by $250,000 per year. 6. The clinic is expected to reduce costs at Allegheny Community Hospital. Annual cost savings at the hospital are projected to be $1,000,000. 7. A major refurbishment of the clinic is expected to be necessary toward the end of 20x5. This work will cost $180,000 8. Due to shifting medical needs in the county, the administrator doubts the clinic will be needed after 20x9. 9. The clinic building and equipment could be sold for $290,000 at the end of 20x9. 10. The hospital's hurdle rate is 12 percent. the net present value of the proposed outpatient clinic. (Round your "Discount factors" to 3 decimal places. Negative amounts should be indicated 20x2 20x3 20x0 20x1 20x4 20x5 206 20x7 20x8 20x9 $ $ $ $ $ $ $ $ $ 0 0 0 0 10 0 0 0 S $ S S $ 0 0 0 0 0 0 0 0 0 $ Future Value and Present Value Tables Table I Future Value of $1.00(1 Period 4% 6% 8% 10% 12% 14% 20% 1.080 1.200 1 1.040 1.060 1.100 1.120 1.140 1.082 1.254 2 1.124 1.166 1.210 1.300 1.440 1.331 3 1.125 1.405 1.728 1.191 1.260 1.482 1.574 4 1.170 1.263 1.361 1.689 2.074 1.464 5 1.217 1.338 1.469 1.611 1.762 1.925 2.488 1.265 1.419 1.587 1.772 1.974 2.195 2.986 1.316 1.504 7 1.714 1.949 2.211 2.502 3.583 1.369 8 1.594 1.851 2.144 2.476 2.853 4.300 1.423 1.690 1.999 2.359 2.773 3.252 5.160 3.106 10 1.480 1.791 2.159 2.594 3.707 6.192 1.540 11 1.898 2.332 2.853 3.479 4.226 7.430 12 1.601 2.012 2.518 3.139 3.896 4.818 8.916 13 1.665 2.133 2.720 3.452 4.364 5.492 10.699 4.887 14 1.732 2.261 2.937 3.798 6.261 12.839 15.407 15 1.801 2.397 3.172 4.177 5.474 7.138 20 2.191 3.207 4.661 6.728 9.646 13.743 38.338 3.243 10.063 17.450 237.380 50.950 30 5.744 29.960 10.286 21.725 93.051 40 4.801 45.260 188.880 1,469.800 Table II Future Value of a Series of $1.00 Cash Flows (Ordinary Annuity) |(1+ n"-1 Period 4% 6% 8% 10% 12% 14% 20% 1.000 1.000 1.000 1 1.000 1.000 1.000 1.000 2.040 2.080 2 2.060 2.100 2.120 2.140 2.220 3.184 3.246 3.310 3.374 3.640 3 3.122 3.440 4 4.247 4.375 4.506 4.641 4.779 4.921 5.368 5 5.867 6.610 7.442 5.416 5.637 6.105 6.353 6.975 9.930 6 6.633 7.336 7.716 8.115 8.536 8.394 7 7.898 8.923 9.487 10.089 10.730 12.916 13.233 16.499 8 9.214 9.898 10.637 11.436 12.300 13.580 16.085 10.583 11.491 12.488 14.776 20.799 12.006 15.938 10 13.181 14.487 17.549 19.337 25.959 20.655 11 13.486 14.972 16.646 18.531 23.045 32.150 21.385 15.026 18.977 24.133 39.580 12 16.870 27.271 48.497 13 16.627 18.882 21.495 24.523 28.029 32.089 21.015 32.393 14 18.292 24.215 27.976 37.581 59.196 31.773 43.842 15 20.024 23.276 27.152 37.280 72.035 91.025 186.690 20 29.778 36.778 45.762 57.276 75.052 164.496 356.790 1,181.900 30 56.085 79.058 113.283 241.330 1,342.000 40 95.026 154.762 259.057 442.597 767.090 7,343.900 4% 6% 8% 10% 12% 18% 24% 26% 28% Period 14% 16% 20% 22% 30% 32% 1 962 943 926 .909 893 .877 862 847 833 820 .806 794 781 769 758 694 630 2 925 890 857 826 797 769 743 718 672 650 610 592 574 889 609 3 840 794 751 712 675 641 579 551 524 500 477 455 435 855 792 735 683 636 592 552 516 482 451 423 397 373 350 329 822 681 47 26 747 621 567 519 437 402 370 341 315 291 250 20 6 790 705 630 564 507 45 410 .370 335 303 275 250 227 189 7 760 665 583 513 452 400 35 314 279 .249 222 198 17 159 143 627 467 8 731 540 404 305 266 233 204 .179 .157 .139 123 108 703 592 500 424 361 308 263 .22 194 167 144 125 108 094 082 .08 10 676 558 463 386 322 270 227 19 162 137 116 099 .073 062 11 650 527 429 350 287 237 195 16 135 112 094 079 066 056 047 12 625 4 39 319 257 208 168 112 092 076 062 .052 043 036 137 601 09 050 13 469 36 .290 229 145 075 .061 .040 03 027 182 116 34 14 577 442 263 205 .160 125 09 07 062 049 039 032 02 021 239 065 15 555 417 315 .183 084 051 040 031 025 020 016 140 108 03 20 456 312 .215 149 .104 073 051 026 019 014 010 007 005 004 .057 .001 30 308 174 .099 033 020 01 007 004 003 002 001 40 208 097 046 022 011 .005 003 001 00 - - _ _ Table IV Present Value of Series of $1.00 Cash Flows 1 (1 8% 18% 25% Period 4% 6% 10% 12% 14% 16% 20% 22% 24% 28% 30% 26% 1 0.962 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.820 0.806 0.800 0.794 0.781 0.769 1.605 2 1.886 1.833 1.783 1.736 1.690 1.647 1.566 1.528 1.492 1.457 1.424 1.392 1.361 1.440 2.673 2.487 2.106 2.042 3 2.775 2.577 2.402 2.322 2.246 2.174 1.981 1.952 1.923 1.868 1.816 3.037 2.914 2.494 4 3.630 3.465 3.312 3.170 2.798 2.690 2.589 2.404 2.320 2.241 2.166 2.362 4.452 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 2.864 2.745 2.689 2.635 2.532 2.436 4.917 2.885 5.242 4.623 4.355 4.111 3.889 3.326 3.167 2.951 2.759 2.643 3.685 3.498 3.020 3.242 5.582 4.288 3.416 3.083 7 6.002 5.206 4.868 4.564 4.039 3.812 3.605 3.161 2.937 2.802 8 6.210 4.639 3.076 6.733 5.747 5.335 4.968 4.344 4.078 3.837 3.619 3.421 3.329 3.241 2.925 4.946 6.802 4.607 7.435 6.247 5.759 5.328 4.303 4.031 3.786 3.566 3.463 3.366 3.184 3.019 3.682 10 8.111 7.360 6.710 6.145 5.650 5.216 4.833 4.494 4.192 3.923 3.571 3.465 3.269 3.092 3.776 3.656 3.335 11 8.760 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 4.035 3.544 3.147 5.197 3.851 12 9.385 8.384 7.536 6.814 6.194 5.660 4.793 4.439 4.127 3.725 3.606 3.387 3.190 9.986 5.342 13 8.853 7.904 7.103 6.424 5.842 4.910 4.533 4.203 3.912 3.780 3.656 3.427 3.223 10.563 7.367 6.628 4.265 3.962 3.695 8.244 6.002 5.008 3.459 3.249 14 9.295 5.468 4.611 3.824 11.118 6.811 5.575 15 9.712 8.559 7.606 6.142 5.092 4.675 4.315 4.001 3.859 3.726 3.483 3.268 7.469 20 13.590 11.470 9.818 8.514 6.623 5.929 5.353 4.870 4.460 4.110 3.954 3.808 3.546 3.316 13.765 7.003 6.177 4.534 3.842 30 17.292 9.427 8.055 5.517 4.979 4.160 3.995 3.569 3.332 11.258 11.925 8.244 7.105 3.846 40 19.793 15.046 9.779 6.234 5.548 4.997 4.544 4.166 3.999 3.571 3.333