Question
Consider the project contained in Problem 7 in Chapter 11 (California Health Center).a. Perform a sensitivity analysis to see how NPV is affected by changes
Consider the project contained in Problem 7 in Chapter 11 (California Health Center).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. Remember supplies vary with number of procedures. 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:
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