(Answered) The equipment will generate 3000000 per year in revenues

Finance

The equipment will generate $3,000,000 per year in revenues for the next 5 years. The expected operating expenses, excluding depreciation, will increase expense by $1,200,000 per year for the next 5 years. The initial capital investment outlay for the imaging equipment is $5,500,000 and will be depreciated on straight line basis to its salvage value of $800,000 at year 5. The cost of capital for this project is 12%. The tax rate for Marshall Heathcare is 40%. What is the NPV and IRR?

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