Question
Develop a profitability summary from the data provided Profitability includes: Summary by payer including volume, charges, net revenue, direct cost, contribution margin, total cost, and
Develop a profitability summary from the data
provided Profitability includes:
Summary by payer including volume, charges, net revenue, direct cost, contribution margin, total cost, and net operating income Utilizing the information above develop a pro-forma for purchasing a MRI and the associated buildout for it
The total cost of the project is $1,000,000
The useful life of the equipment is assumed at 7 years
The additional capacity will allow for annual volume growth between 20%-35%
Calculate the incremental contribution margin in the pro-forma
Calculate the Net Present Value, Internal rate of return, and Pay Back Period utilizing the incremental contribution margin
Assume a discount value of 7%
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