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I am not able to post images of the case study here for some reason. The following questions are regarding Case 20-Coral Bay Hospital: Traditional

I am not able to post images of the case study here for some reason.

The following questions are regarding Case 20-Coral Bay Hospital: Traditional Project Analysis from Gapenski's Cases in Healthcare Finance, 6th edition

  1. What are the NPV, IRR, MIRR, and payback of the proposed ambulatory surgery center? Do the measures indicate acceptance or rejection of the proposed ambulatory surgery center?

  1. One board member wants to make sure that a complete risk analysis, including sensitivity and scenario analyses, is performed before the proposal is sent to the board.

    • Perform a sensitivity analysis.

    • What management information is provided by the sensitivity analysis?

  2. Perform a scenario analysis.

    • What management information is provided by the scenario analysis?

    • Why is the expected NPV obtained in the scenario analysis different from the base case NPV?

  3. A board member is interested in the utilization breakeven of the Center.

    • What are the breakeven values of the three input variables that are highly uncertain?

    • What management information is provided by the breakeven analysis?

  4. I have seen individuals post the depreciation values however I am confused on how and where they are finding the MACRS Factors of: 0.20,0.32,0.19,0.12,0.11,0.06. Please explain

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