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On Calculating the expected NPV of a project Management the Physician one and Joint P. Cine is considering the purchaserowy red the modern wilde babe Signs of foot and se problem. The machine is quite expensive but wouldnt for anumber of years. The dini's CFOsad no worses of the NPV anometnes under The level of mand for thigh, medium, and owl. To carry out the anthe CFO iroda percent probably to the medium and 33 percent to the dans son maring ow.comand sal Aher forecasting the demand for the machine based on the CFO's mentine postationer som any made the following NPV eine B a. What is the expected NPV for the MRI machine bed on the beves? How would you are the meaning of the speed NPV Doshi kapoor you! b. Assuming that the probability of the medium comandarea 58 percent, calculate the maximum probably you can sign to the lowed and expected to her for the hearts assigned to meets must be 100 percent) 2. The expected NPU for the machine Round to the nearest dote) would product are shown here: E. Since this is a new product line, you 12 percent higher or 12 percent lower than expected. Assume that this new product line will require an initial outlay of me depreciation. In addition, the firm's required rate of return or cost of capital is 10.1 percent, and the firm's marginal ta + price 12 percent above expected, variable costs 12 percent less than expected, fixed costs 12 percent less than expect Ho." to the nearest dollar.) i Data Table Unit price: $129 Variable costs: $78 Fixed costs: $253,000 per year Expected sales: 10,500 per year (Click on the icon in order to copy its contents into a spreadsheet.) Print Done click Che Answer Question Help Calculating the expected NPV of a project Management the Physician Bone and P8.1) Cine la considering wheets purchase newly developed MRI machine at the manufacturers then we provide resterer dagnoses of foot and nee problem. The new machine is quite expensive but should last for tomber of years. The din CFO analyst to optime of the NPV of the vender three monteur level of demand for its use thigh, medium and low). To carry out there. The CFO gred a 5 percent probably to the demande, pero probably the demande de rang percent low-centand state. After forecasting the demand for the machine based on the CFOsment and pastinates for they made the following NPV What is the expected NPV for the MRI machine based on the shove estimates? How would you interpret the meaning of the expected NPV? Does is look like a good meant to you! b. Assuming that the probability of the medium demand wat remains a percent calculate the manum probability you can assign to the low.derand state and have an expected NPV for Night: The sum of the probas signed to all three states must be 100 percent) The expected NPV for the MRI machine is (Round to the nearest dow) scans, the analyst made the following NP above estimates? How would you interpret the meaning of the expected NPV? Does this look like a good emains 58 percent, calculate the maximum probability you can assign to the low-demand state and still have the nearest dollar 0 Data Table Demand State Low Medium High Probability of State 9% 58% 33% NPV Estimate $(301,000) $190,000 $406,000 (Click on the icon in order to copy its contents into a spreadsheet.) Print Done Calculating the expected NPV of a project Management of the Physicians Bone and Joint (PB8J) Clinic is considering whether to purchase a newly developed MRI machine that the manufacture will provide mere agnoses of foot and knee problems. The new machine is quite expensive but should last for a number of years. The clinic's CFO asked an analyst to work of the NPV of te verte honete vel of demand for its use thigh, medium, and low). To carry out the analysis, the CFO assigned a 58 percent probability to the medium-demanda, a 35 percent probably behind and the rear pants w.demand state. After forecasting the demand for the machine based on the CFO's judgment and pastization rates for MRI scan the analyst made the following NPV et What is the expected NPV for the MRI machine based on the above estimates? How would you interpret the meaning of the expected NPV? Does this look like a good mornit to you? Assuming that the probability of the medium-demand state remains 58 percent, calculate the maximum probability you can assign to the low-demand state and have an expected NPV Daha et The some soigned to all three states must be 100 percent.) The expected NPV for the MRI machine is (Round to the nearest dolar) newly developed MRI ma The clinic's CFO asked an analyst to work up estimates o the CFO assigned a 58 percent probability to the medium-demand state, a 33 percent probat achine based on the CFO's judgment and past utilization rates for MRI scans, the analyst made the following NPV on the above estimates? How would you interpret the meaning of the expected NPV? Does this look like a good in ate remains 58 percent, calculate the maximum probability you can assign to the low-demand state and still have a to the nearest dallar) 0 Data Table Demand State Low Medium High Probability of State 9% 58% 33% NPV Estimate 1$(301,000) $190,000 $406,000 (Click on the icon in order to copy its contents into a spreadsheet.) Print Done
