Great Lakes Clinic has been asked to provide exclusive health care services for new year’s World Exp

Great Lakes Clinic has been asked to provide exclusive health care services for new year’s World Exposition. Although flattered by the request, the clinic’s managers want to conduct a financial analysis of the project. There will be an up-front cost of $160,000 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.What is the project’s IRR?

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