The hospital for ordinary surgery is considering a new lab. The lab will cost $$5$ million and is expected to generate the cash flows shown below. If the hospitals cost of funds is $10\%,$ answer the following questions.

Start year: $-$$$5,000$

Year $1$: $$1,700$

Year $2$: $$1,500$

Year $3$: $$1,500$

Year $4$: $$1,400$

a$.$What is the return expected on this investment measured in dollar terms $($NPV$)?$

b$.$ Provide an explanation, in economic terms, of your answer.

c$.$ What is the return on this investment measured in percentage terms $($IRR$)?$ What is the modified internal rate of return $($MIRR$)?$ Which one is a better indicator of a project profitability? Why?

d$.$ Should this investment be made? Explain your answer.