Decision on building the new surgery center:

a. What qualitative factors might support project acceptance?

b. What qualitative factors might preclude project acceptance?

c. Can you think of any costs that might be associated with the project that have not been included in the analysis?

d. Are there any potential benefits that have not been included?

e. What additional data would you seek from other hospital staff members to conduct a more thorough analysis?

INPUT DATA: KEY OUTPUT: $150,000 $200,000 $10,000,000 $5,000,000 20 $1,000 $918,000 $50,000 $36,000 $200 30% 30% 40.0% $1,000,000 $500,000 10.0% $875,020 12.9% 11.8% Land initial cost Land opportunity cost (and salvage value) Building/equipment cost Build/equipment salvage value Procedures per day Average net patient revenue per procedure Labor costs Utilities costs Incremental overhead Supply cost ($/procedure) Inflation rate on net patient revenue Inflation rate on costs Tax rate Revenues lost from inpatient surgeries Reduction in inpatient surgery costs Cost of capital NPV MIRR Payback