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(750- 1000 Words) Capital Budgeting Analysis for a 50-Bed Hospital For this assignment, you are required to conduct a feasibility study of establishing a 50-bed
(750- 1000 Words) Capital Budgeting Analysis for a 50-Bed Hospital For this assignment, you are required to conduct a feasibility study of establishing a 50-bed hospital. The initial cost and financial projections of revenues and expenditure for the next ten years are provided in the Excel table: Part 1: Financial Analysis Key calculations will include determining the net present value (NPV) at a required rate of return at 16% for the project, internal rate of return (IRR), payback period, and profitability index based on the provided financial projections. These calculations will help you evaluate the potential returns and risks associated with investing in the 50-bed hospital project. Part 2: Sensitivity Analysis Perform a sensitivity analysis under the following scenarios: 1. Increase annual costs by 8% 2. Increase annual revenues by 12% 3. Increase annual costs by 8% and annual revenues by 12% Calculate the NPV at a required rate of return at 16%, and measure IRR for each of these scenarios. Investment Proposal Report Prepare an investment proposal report based on the analysis conducted in the previous two parts. Include a summary of the findings, recommendations, and conclusions regarding the feasibility of the project
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