File Home Insert Page Layout Formulas Data Review View Help Comments 1 Shar PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing H4 X V A B C D E F G H You are a practice manager for Eden Wellness and Aesthetics - a successful and high patient volume med-spa. As the practice manager, you are responsible for arranging financing for equipment purchases and determining pricing for new services. You have been asked to purchase a laser machine, with a purchase price of $25,000. You will need to determine the treatment price for patients, and how many treatments must be sold to reach a profitable return on the investment. For this scenario, you will only be factoring in the cost of purchasing the laser machine, not additional costs of supplies, administrative expenses, etc. 2 3 Consider this information as you work through the Excel document: . Opportunity cost of capital is 12% . Estimate cash flows (treatment price) for six months 4 . Competitor pricing for this procedure is $1,200 COMPLETE ALL YELLOW CELLS 7 # of treatments at $ each Net Present Value (NPV) # of treatments at $ each Internal Rate of Return (IRR) 8 12% Project (opportunity) cost of capital 12% Project (opportunity) cost of capital 9 S (25,000) Cash flow month 0 $ (25,000) Cash flow month 0 10 Example: 3 at $,1000 S 3,000 Cash flow month 1 Example: 3 at $,1000 $ 3,000 Cash flow month 1 11 Cash flow month 2 Cash flow month 2 12 Cash flow month 3 Cash flow month 3 13 Cash flow month 4 Cash flow month 4 14 Cash flow month 5 Cash flow month 5 15 Cash flow month 6 Cash flow month 6 16 17 $ (22,321.43) NPV