Question
Ahmed was a doctor with a general practice in one of the cities of Bangladesh.. He and his wife were planning to build a hospital.
Ahmed was a doctor with a general practice in one of the cities of Bangladesh.. He and his wife were planning to build a hospital. The hospital would start with an opd. This would cost Rs 500,000 including land and construction. He further needed Rs 8000 per annum to maintain the outdoor centre. After two years, he decided and planned to expand the services to include a surgery ward. This service would cost Rs 800,000 for building and furniture, plus an additional Rs 6000 per annum for maintenance. He had spoken with some of his old college friends who agreed to set up a foundation to support this programme. Ali was working with a 11 % discount rate and assuming a project life of 11years.
Calculate the feasibility and NPV.
Make the timeline also.
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