Evans, 2^nd ed., chapter 11, problem 33. In addition to what is described in the problem, suppose there is a $60,000,000 outlay for a capital project incurred at the beginning of the first year (Hint: Think of this negative outlay as occurring in Year 0 before the revenues are received from the patients in years 1-3).

Do ONLY the following parts:

Build a spreadsheet based on the assumptions given in the problem text to compute the net present value of the profit for Hyde Park Surgery Center over the next three years. Include the capital outlay of $40M in this NPV calculation.

Build data tables showing the sensitivity in NPV for each of the following scenarios (Hint: Use DataWhat If Analysis):

Changes to the growth rate in average billing per patient from -1% to 5% per year in increments of 0.5%. (Hint: Currently the average billing per patient is estimated to start in year 1 at $150,000 per patient and increases at 3% per year, what if increases more slowly? Faster? Use a one-way data table.)

Changes in the growth rate for the number of patients from 0% to 10% per year in 1% increments AND changes in the growth rates for the fixed costs of salaries and utilities from 4% to 12% per year, again in 1% increments. (Hint: Use a two way Data Table.)

Deople Window Help hoa s, 2nd Ed., Ch ( G changes to the g sign 1937 1/courses/S 37-1 /courses/S n.edu/bbcswebdav/pid-46322 33The Hyde Park Surgery Center specializes in high- risk cardiovascular surgery. The center needs to forecast its profitability over the next 3 years to plan for capital growth projects. For the first year, the hospital anticipates serving 1,200 patients, whiclh is expected to grow by 8% per year. Based on cur- rent reimbursement formulas, each patient provides an average billing of $125,000, which will grow by 3% each year. However, because of managed care, the center collects only 25% of billings. Variable costs for supplies and drugs are calculated to be 10% of billings. Fixed costs for salaries, utilities, and so on, will amount to $20,000,000 in the first year and are assumed to increase by 5% per year. Develop a spreadsheet model to calculate the net present value of profit over the next 3 years. Use a discount rate of 4%. Define three reasonable scenarios that the center director might wish to evaluate and use the Scenario Manager to compare them. 36. The auudi has $500,000 dowment to o value of each 20 scholarshi provided the i each year for n accept the mo ing schools. If sions's deadlin be offered to s students would grams. Conseq more money tha centage of offe students accept to honoring the come out of the tory, the percent fer is about 70% this situation, an deem appropriat make a decision Explain your resu tor, Mr. P. Wools 34. For the garage-band model in Problem 7, construct a tornado chart and explain the sensitivity of each of the model's parameters on total profit 35. For the new-product model in Problem 9, construct a tornado chart and explain the sensitivity of each of the model's parameters on the NPV of profit. Case: Performance Lawn Equipment Part 1: The Performance Lawn Equipment database con forma income statement. Dealers selling PLE products for their part of doing business, and this is accounted fe