The Forbes OBGYN group purchased a new diagnostic machine for their office for $900,000. The expected cash flows for each year of the five year period is $120,000, $155,000, $186,000, $208,000, and $225,000 for the five years. What is the cumulative cash flow and the internal rate of return or the IRR for the project?

Determine the Net Present Value with an interest rate of 10%. Do you proceed or not with the project?

Determine the Payback Period.