Year	1	2	3	4	5	6	7	8	Total
Allowance	14.29%	24.49%	17.49%	12.49%	8.93%	8.92%	8.93%	4.46%	100.00%

Round all your answers to two decimal points.

A. Use the table suggested at the End of Chapter 14.7 to estimate the projects net cash flows (NCF) over its seven-year estimated life. (Hint: As you use the table in ECP 14.7 you may need to expand the table or delete irrelevant sections.)

Year	0	1	2	3	4	5	6	7
NCF

B. What is the Project:

1. Payback Period?

2. NPV

3. IRR

4. MIRR

Question 1 4.23 / 55 pts Koza Memorial Medical Center (KMMC), a for-profit hospital is contemplating buying a new piece of diagnostic equipment for a total cost of $1,500,000. The expected life of the equipment is seven (7) years with a salvage value of $500,000. KMMC expects a daily volume of 20 units for 360 days a year. The hospital expects to collect net patient service revenue per unit of $125. During the first year of operation, labor and maintenance costs are expected to be $175,000, utilities will cost $50,000, other operating costs will amount to $25,000, supply costs are expected to be $15 per unit. All costs and revenues are expected to increase at a 5% inflation rate after the first year except for depreciation. KMMC's tax rate is 30%, and its corporate cost of capital would have been 8%. Consider this project to be an average risk for KMMC. This equipment falls into the MACRS seven years class for tax depreciation and is subject to the following depreciation allowances