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Complete Table l by adding the cash flows for Years 4 and 5. What is the project's paybackr HPV, and IRE? Interpret each of these

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Complete Table l by adding the cash flows for Years 4 and 5. What is the project's paybackr HPV, and IRE? Interpret each of these measures. Suppose that the project would be allocated $10,000 of existing overhead costs. Should these costs be included in the cash flow analysis? Explain. It is likely that many of the procedures at the outpatient surgery center would have otherwise been performed at the hospital's inpatient surgery unit. How should the analysis incorporate the cannibalization of inpatient surgeries? Would the handling of cannibalization change if you believed that the local physicians were going to open an outpatient surgery center of their own? {Only discuss the issues hereno numbers reguired.] Conduct a scenario analysis. What is its expected HPV? What is the worst and best case Hva? How does the worst case yalue help in assessing the hospital's ability to bear the risk of this investment? Now assume that the project is judged to have high risk. Furthermore, the hospital's standard procedure is to use a 3 percentage point risk adjustment. What is the project's NP? after adjusting for the assessment of high risk? What is your final recommendation regarding the proposed outpatient surgery center

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