Great Lake Clinic has been asked to provide
Great Lake Clinic has been asked to provide exclusive healthcare services for next year’s World Exposition. Although flattered by the request, the clinic’s managers want t conduct a financial analysis of the project.___ An up-front cost of $160,000 is needed to get the clinic in operation.__ Then, a net cash inflow of $1 million is expected from operations in each of the two years of the exposition.___ However, the clinic has to pay the organizers of the exposition a fee for the marketing value of the opportunity.__ This fee, which must be paid at the end of the second year, is $2 million.________________________________________________________________ a. What are the net cash flows associated with the project?? ________________________________________________________________b. Assuming a project cost of capital of 10%, what is the project’s NPV?? Finance
