As a result of their recent CHNA report, Hospital ABC decides it needs to invest in
opening a new Health Screening Dep't. The current financial condition is a real
concern to Administration and the Board of Directors. The Project must pay for itself
within the 4 years. Using NPV and a Corp Cost of Cap at 8% does it?
Year	# of Screens per Year	Net Revenue	Fixed Expenses	Variable Expenses	Total Expenses	Net Income
1	2400	$ 240,000	$ 120,000	$ 96,000	$ 216,000
2	3600	$ 369,000	$ 135,000	$ 149,040	$ 284,040
3	4800	$ 504,300	$ 150,000	$ 205,675	$ 355,675
4	6000	$ 646,134	$ 165,000	$ 266,099	$ 431,099
Total	16800	$ 1,759,434	$ 570,000	$ 716,814	$ 1,286,814
	8%	CCC Rate
	Cash Flows	PV's
0	$ (350,000)	$ (350,000)
1	$ -	$0
2	$ -	$0
3	$ -	$0			Net Rev/Unit went up 2.5% yr.
4	$ -	$0			Variable Expenses/Unit went up 3.5%/yr
NPV
IRR