1. The staff of ProHealth Medical Services has established the following net cash flows for a food services operation that may open in its outpatient clinic.

Year	Expected Net Cash Flow
0	($150,000)
1	40,000
2	40,000
3	40,000
4	40,000
5	40,000
5 (Salvage Value)	30,000

The time 0 cash flow is the net investment outlay, while the final amount is the terminal cash flow. The clinic is expected to move to a new building in five years. All other flows represent net operating cash flows ProHealths corporate cost capital is 10%

1. What is the projects IRR?

2. Assuming the project has average risk, what, is its NPV?

3. Now, assume that the operating cash flows in years 1 through 5 could be as low as 20,000 or as high as $50,000. Furthermore, the salvage value cash flow at the end of year 5 could be as low as $0 or as high as $50,000.

4. What are the worst-case and best-case IRRS? The worst-case and best-case NPVs?