You work in a for$-$profit network of laboratories and are considering investing in a new location. The investment will be financed with $100\%$ equity. Expected annual inflation is $2$ percent. The characteristics of the investment are as follows.

The investment has an expected $1-$year life. Assume operating cash flows occur at time t$=1.$

Medical equipment will cost $$1$ million, payable at the start of the project $($time t$=0).$ Equipment qualifies for $3-$year MACRS with annual depreciation of $33\%,45\%,15\%,$ and $7\%$ over a $4-$year period. The real value of the equipment is expected to remain constant throughout the $1-$year life planning horizon.

No investment in working capital is necessary. The business$$s transactions will be conducted in cash, and just$-$in$-$time inventory control will be used.

Expected annual revenue based on last year$$s prices is $$400,000.$ This value is expected to increase at the inflation rate this year. Variable operating expenses are $10\%$ of sales. Fixed operating expenses are $$16,000$ in nominal terms at time t$=1.$

The appropriate nominal discount rate is $8\%$ per year. Your corporate tax rate is $21\%.$

Identify your project$$s nominal cash flows and discount at the nominal required return to find the project$$s NPV$.$