A surgery center specializes in high-risk cardiovascular surgery. The center needs to forecast its profitability over the next three years to plan for capital growth projects. Find the distribution of the net present value of profit over the three-year horizon and analyze the summary statistics using 50 trials. Summarize your conclusions. Use a discount rate of 4%.

Set up a spreadsheet model and calculate the net present value for the profits in thousands of dollars using the minimum for uncertain values with uniform distributions, the mean for uncertain values with normal distributions, and the most likely values for uncertain values with triangular distributions.

The net present value is $ enter your response here thousand

Model discription:. For the first year, the anticipated number of patients served is uniform between 1,400 and 1,800. The growth rate for subsequent years is triangular with parameters (4%, 7%, 8%), and the growth rate for year 2 is independent of the growth rate for year 3. Average billing is normal with mean of $150,000 and standard deviation $10,000. However, because of managed care, the center collects only 30% of billings. Variable costs for supplies and drugs are calculated to be 9% of billings. Fixed costs for salaries, utilities, and so on will amount to $20,000,000 in the first year and the annual increase in fixed costs is uniform between 4% and 6% and independent of other years.pop-up content ends

PLEASE USE THESE NUMBERS!!!!!!!!!!!!!!!!

Trial NPV 1 70705 2 89927 3 109254 4 95010 5 90048 6 80896 7 96988 8 106692 9 113781 10 69860 11 85370 12 79253 13 86485 14 88007 15 73351 16 99802 17 91026 18 87933 19 121996 20 91055 21 100933 22 103655 23 69224 24 88640 25 76817 26 98085 27 99331 28 108140 29 83551 30 95453 31 94148 32 82200 33 79588 34 91195 35 78404 36 122083 37 79544 38 108289 39 85873 40 88553 41 81895 42 78805 43 97185 44 81327 45 97934 46 77985 47 71009 48 98321 49 107302 50 67558