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14.7 is posted, it's the second picture. 153 Consider the project contained in Problem 14.7 in Chapter 14 a. Perform a sensitivity analysis to see
14.7 is posted, it's the second picture.
153 Consider the project contained in Problem 14.7 in Chapter 14 a. Perform a sensitivity analysis to see how NPV is affected by changes in the number of procedures per day, average collection amount, and salvage value. b. Conduct a scenario analysis. Suppose that the hospital's staff concluded that the three most uncertain variables were number of procedures per day, average collection amount, and the equipment's salvage value. Furthermore, the following data were developed: Number of Scenario Probability Procedures Collection Salvage Value 10 15 20 AverageEquipment Worst Most likely Best 0.25 0.50 0.25 $ 60 80 100 $100,000 200,000 300,000 153 Consider the project contained in Problem 14.7 in Chapter 14 a. Perform a sensitivity analysis to see how NPV is affected by changes in the number of procedures per day, average collection amount, and salvage value. b. Conduct a scenario analysis. Suppose that the hospital's staff concluded that the three most uncertain variables were number of procedures per day, average collection amount, and the equipment's salvage value. Furthermore, the following data were developed: Number of Scenario Probability Procedures Collection Salvage Value 10 15 20 AverageEquipment Worst Most likely Best 0.25 0.50 0.25 $ 60 80 100 $100,000 200,000 300,000Step by Step Solution
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