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I am not sure how to get the answers for this case? Case 20: CORAL BAY HOSPITAL Traditional Project Analysis: This case illustrates a complete
I am not sure how to get the answers for this case?
Case 20: CORAL BAY HOSPITAL Traditional Project Analysis: This case illustrates a complete capital budgeting analysis, including cash flow analysis and profitability measures. The model consists of a complete base case analysis - no changes need to be made to existing model - GENERATED DATA section. However, all values in this version INPUT DATA section have been replaced with zeros. Thus, students must determine appropriate input values and enter them into the model. When this is done, any error cells will be corrected and base case solution will appear. The student version does not contain any risk analyses, so students will have to create their own if required by the case. Students must create their own graphics (charts) as needed to present their results. INPUT DATA OUTPUT KEY Land initial cost $0 $0 NPV Land opportunity cost (and salvage value) #NUM! $0 IRR Building/equipment cost #NUM! $0 MIRR Build/equipment salvage value 999.0 $0 Payback Procedures per day Average net patient revenue per procedure 0 $0 Labour costs $0 Utilities costs $0 Incremental overhead Supply cost ($/procedure) Inflation rate on net patient revenue Inflation rate on costs $0 $0 0.0% 0.0% Tax rate 0.0% Revenues lost from inpatient surgeries $0 Reduction in inpatient surgery costs $0 Cost of capital 0.0% MODEL-GENERATED DATA: Depreciation Schedule: Year MACRS Depreciation End of Year Factor Expense 1 0.20 $0 $0 2 0.32 0 0 3 0.19 0 0 4 0.12 0 0 5 0.11 0 0 6 0.06 0 0 Book value Net Cash Flows: Project Cash Flows ___________________________________________________________ 0 1 2 3 4 5 _____________________________________________________________ Land opportunity cost $0 Building/equipment cost 0 Net patient revenue $0 $0 Less: Labour costs 0 Cost savings on inpatients $0 $0 0 0 $0 0 0 0 0 0 0 0 Utilities costs 0 0 0 0 0 Supplies 0 0 0 0 0 Incremental overhead 0 0 0 0 0 Depreciation 0 0 0 $0 0 $0 0 ___________________________________________________ Income before taxes $0 $0 Taxes 0 0 0 $0 0 0 _____________________________________________________ Project net income $0 $0 Plus: Depreciation 0 $0 $0 0 0 0 $0 0 Plus: Net land salvage value 0 Plus: Net building/equipment salvage value 0 _______________________________________________________ Net cash flow $0 $0 $0 $0 $0 $0 _______________________________________________________ Cumulative net cash flow $0 $0 $0 (For payback calculation) Profitability and Breakeven Measures: Net Present Value (NPV) Internal rate of return (IRR) Modified IRR (MIRR) $0 #NUM! #NUM! $0 $0 $0 Payback 999.0Step by Step Solution
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