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*Could you please include excel formula within the answers?* nnancially 153 Consider the project contain a. Perform a sensitivity ana changes in the number of

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*Could you please include excel formula within the answers?*
nnancially 153 Consider the project contain a. Perform a sensitivity ana changes in the number of amount, and salvage value. ect contained in Problem 14.7 in Chapter 14. tivity analysis to see how NPV is affected by in the number of procedures per day, average collection 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: Scenario Number of Procedures Worst Most likely 10 Probability 0.25 0.50 0.25 Average Collection $ 60 80 100 Equipment Salvage Value $100,000 200,000 300,000 Best Finance c. Finally, assume that California Health Center's average project has a coefficient of variation of NPV in the range of 1.0-2.0. (Hint: The coefficient of variation is defined as the standard deviation of NPV divided by the expected NPV.) The hospital adjusts for risk by adding or subtracting 3 percentage points to its 10 percent corporate cost of capital. After adjusting for differential risk, is the project still profitable? d. What type of risk was measured and accounted for in parts b and Should this be of concern to the hospital's managers? nnancially 153 Consider the project contain a. Perform a sensitivity ana changes in the number of amount, and salvage value. ect contained in Problem 14.7 in Chapter 14. tivity analysis to see how NPV is affected by in the number of procedures per day, average collection 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: Scenario Number of Procedures Worst Most likely 10 Probability 0.25 0.50 0.25 Average Collection $ 60 80 100 Equipment Salvage Value $100,000 200,000 300,000 Best Finance c. Finally, assume that California Health Center's average project has a coefficient of variation of NPV in the range of 1.0-2.0. (Hint: The coefficient of variation is defined as the standard deviation of NPV divided by the expected NPV.) The hospital adjusts for risk by adding or subtracting 3 percentage points to its 10 percent corporate cost of capital. After adjusting for differential risk, is the project still profitable? d. What type of risk was measured and accounted for in parts b and Should this be of concern to the hospital's managers

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