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1 . What is the payback period for the clinic? 2 . What is the Net Present Value of the clinic? 3 . What impact

1. What is the payback period for the clinic?
2. What is the Net Present Value of the clinic?
3. What impact would it have on the payback period and NPV if revenues are 10% less than anticipated?
4. What impact would it have on the payback period and NPV if operating costs are 5% greater than anticipated due to continued inflation? Note: Evaluate the 3 situations (original assumptions, lower revenues, higher operating costs) presented in questions 2,3 and 4 separately.
5. Should National Forest Health Services open the Mobile Clinic? Why or Why Not?
6. National Forest Health Services is also considering opening the Mobile Clinic as a for-profit subsidiary. Assume National Forest uses straight-line depreciation and the mobile clinic subsidiary would be in the 25% tax rate. What impact does this have on your NPV calculation and your decisions?
7.What is your final recommendation on what National Forest Health Services should do? Support your decision.
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