I am unable to find one number for the Case Study 21 in Gapenski Cases in Healthcare Finance. I am looking for the Unexpensed Dev. Cost in the other other data section. Is anyone aware of what that number is suppose to be?

CASE21 CASE 21 8/13/13 Student Version Copyright 2014 Healt Administration Press NATIONAL REHABILITATION CENTERS Staged Entry Analysis This case is designed to give further insight into the capital budgeting decision process. It focuses on the timing and relevancy of cash flows, the use of decision trees, abandonment, value, and the advantages and disadvantages of staged entry. The model calculates NPV, IRR, MIRR, payback, and discounted payback on the basis of input data for two stages of a project. Note that the model extends to Column K. The model consists of a complete base case analysisno changes need to be made to the existing MODEL-GENERATED DATA section. However, all values in the student version INPUT DATA section have been replaced with zeros. Thus, students must determine the appropriate input values and enter them into the model. These cells are colored red. When this is done, any error cells will be corrected and the base case solution will appear. However, students must create their own graphics (charts) as needed to present their results. Note that the model contains a second sheet to help with the risk calculations. Here, users enter the NPVs and joint probabilities of each branch of the decision tree and the model calculates expected NPV, variance, standard deviation, and coefficient of variation. INPUT DATA: (000s of $) KEY OUTPUT: (000s of $) Stage 1: Stage 1: Facilities Costs: Labor market study costs Land acquisition costs Land salvage value Building / equipment costs Bldg / equip salvage value $2,000,000 $10,000,000 $10,000,000 $50,000,000 $30,000,000 Expected values: NPV IRR Operating Costs: Variable costs Fixed costs Fixed cost inflation rate Revenue Data: NPV IRR MIRR Payback Disc payback Poor Scenario Good Scenario ($26,626,780) $2,664,207 -0.9% 14.2% 4.1% 13.7% 0.0 6.8 100.0 7.9 30.0% $25,000,000 2.0% ($11,981,286) 6.7% Stage 2: NPV @ Yr 0 IRR MIRR Poor Demand: Page 1 High $190,687,647 35.2% 30.6% Medium $78,710,598 23.3% 20.9% Low ($89,741,115) -1.9% 1.7% CASE21 Year 4 total revenues Revenue growth rate $40,000,000 3.0% Good Demand: Year 4 total revenues Revenue growth rate $60,000,000 6.0% Other Data: Unexpensed dev. costs Tax rate Corporate cost of capital Risk adj for project risk Demand probabilities: Poor Good $25,000,000 30.0% 10.0% 3.0% 50.0% 50.0% Stage 2: Expected NPV Stage 1 poor demand Stage 1 good demand Combined NPV Combined Stage 1 and Stage 2 NPV: Poor Stage 1: Stage 1 + Low demand Stage 1 + Medium demand Stage 1 + High demand ($116,367,895) $52,083,817 $164,060,867 Good Stage 1: Stage 1 + Low demand Stage 1 + Medium demand Stage 1 + High demand ($87,076,908) $81,374,805 $193,351,854 Expected NPV Cash Flow Data: End of Year 6 7 8 9 10 11 12 High Demand ($240,000,000) (240,000,000) 210,000,000 228,000,000 241,000,000 256,000,000 500,000,000 Net Cash Flow Med Demand ($240,000,000) (240,000,000) 160,000,000 170,000,000 175,000,000 180,000,000 350,000,000 Poor Stage 1 0.0% 0.0% 0.0% Good Stage 1 0.0% 0.0% 0.0% Other Data: Demand probabilities: Low Medium High $0 $0 $0 MODEL-GENERATED DATA: Stage 1: Depreciation Cash Flow Worksheet: Page 2 Low Demand ($240,000,000) (240,000,000) 70,000,000 75,000,000 75,000,000 75,000,000 150,000,000 $0 CASE21 Year 4 5 6 7 8 Build / Equip $7,150,000 12,250,000 8,750,000 6,250,000 4,450,000 $38,850,000 Cash Flow Statements: Poor Demand Scenario: Feasibility study costs Land acquisition costs R & D tax savings Building/equipment costs Total facilities costs 0 ($2,000,000) 1 2 3 ($10,000,000) (7,500,000) ($9,500,000) $1,500,000 ($10,000,000) (25,000,000) (25,000,000) ($25,000,000) ($25,000,000) Total revenues Variable costs Total fixed costs Depreciation Operating income Tax Net income Plus depreciation Operating cash flow Land salvage value Land salvage value tax Building / Equip salvage value Building / Equip SV tax Net cash flow ($10,000,000) ($25,000,000) ($25,000,000) NPV, IRR, MIRR, and Payback: Year 0 1 Cash Flow ($9,500,000) (10,000,000) $1,500,000 $40,000,000 12,000,000 25,000,000 7,150,000 ($4,150,000) (1,245,000) ($2,905,000) 7,150,000 $4,245,000 ($9,500,000) Project cost of capital = 4 13.0% PV of Cumulative Cumulative Cash Flow Flows PV ($9,500,000) ($9,500,000) ($9,500,000) (8,849,558) (19,500,000) (18,349,558) Page 3 Terminal Value $5,745,000 CASE21 2 3 4 5 6 7 8 (25,000,000) (25,000,000) 5,745,000 7,513,000 6,711,640 6,221,309 40,297,410 (19,578,667) (17,326,254) 3,523,516 4,077,755 3,223,725 2,644,434 15,158,268 NPV IRR MIRR Payback Discounted payback ($26,626,780) -0.9% 4.1% 0.0 100.0 (44,500,000) (69,500,000) (63,755,000) (56,242,000) (49,530,360) (43,309,051) (3,011,641) (37,928,225) (55,254,479) (51,730,963) (47,653,207) (44,429,482) (41,785,048) (26,626,780) $9,367,071 10,840,485 8,570,093 7,030,079 40,297,410 PV of COF TV of CIF ($55,254,479) $76,105,138 Good Demand Scenario: Feasibility study costs Land acquisition costs R & D tax savings Building/equipment costs Total facilities costs 0 ($2,000,000) 1 2 3 ($10,000,000) (7,500,000) ($9,500,000) $1,500,000 ($10,000,000) (25,000,000) (25,000,000) ($25,000,000) ($25,000,000) Total revenues Variable costs Total fixed costs Depreciation Operating income Tax Net income Plus depreciation Operating cash flow Land salvage value Land salvage value tax Building / Equipment salvage value Building / Equipment SV tax Net cash flow $1,500,000 $60,000,000 18,000,000 25,000,000 7,150,000 $9,850,000 2,955,000 $6,895,000 7,150,000 $14,045,000 ($9,500,000) ($10,000,000) NPV, IRR, MIRR, and Payback: Project cost of capital = 4 13.0% Page 4 ($25,000,000) ($25,000,000) $15,545,000 CASE21 Year 0 1 2 3 4 5 6 7 8 Cash Flow ($9,500,000) (10,000,000) (25,000,000) (25,000,000) 15,545,000 18,489,000 18,951,840 19,819,730 55,354,260 NPV IRR MIRR Payback Discounted pay PV of Cumulative Cumulative Cash Flow Flows PV ($9,500,000) ($9,500,000) ($9,500,000) (8,849,558) (19,500,000) (18,349,558) (19,578,667) (44,500,000) (37,928,225) (17,326,254) (69,500,000) (55,254,479) 9,534,040 (53,955,000) (45,720,439) 10,035,088 (35,466,000) (35,685,351) 9,102,920 (16,514,160) (26,582,431) 8,424,587 3,305,570 (18,157,843) 20,822,051 58,659,830 2,664,207 $2,664,207 14.2% 13.7% 6.8 7.9 PV of COF TV of CIF Terminal Value $25,345,712 26,677,723 24,199,604 22,396,295 55,354,260 ($55,254,479) $153,973,595 Stage 2: High Demand Scenario: Year 6 7 8 9 10 11 12 Cash Flow ($240,000,000) (240,000,000) 210,000,000 228,000,000 241,000,000 256,000,000 500,000,000 Project cost of capital = NPV @ Year 6 IRR MIRR Payback Discounted payback NPV @ Year 0 PV of Cumulative Cumulative Cash Flow Flows PV ($240,000,000) ($240,000,000) ($240,000,000) (212,389,381) (480,000,000) (452,389,381) 164,460,804 (270,000,000) (287,928,577) 158,015,437 (42,000,000) (129,913,140) 147,809,813 199,000,000 17,896,673 138,946,544 455,000,000 156,843,217 240,159,264 955,000,000 397,002,481 13.0% $397,002,481 35.2% 30.6% 3.2 3.9 $190,687,647 PV of COF ($287,928,577) TV of CIF $1,425,993,416 Medium Demand Scenario: Page 5 Terminal Value 328,980,516 307,732,900 289,280,000 500,000,000 CASE21 Year 6 7 8 9 10 11 12 Cash Flow ($240,000,000) ($240,000,000) $160,000,000 $170,000,000 $175,000,000 $180,000,000 $350,000,000 Project cost of capital = NPV @ Year 6 IRR MIRR Payback Discounted payback NPV @ Year 0 PV of Cumulative Cumulative Cash Flow Flows PV ($240,000,000) ($240,000,000) ($240,000,000) (212,389,381) (480,000,000) (452,389,381) 125,303,469 (320,000,000) (327,085,911) 117,818,528 (150,000,000) (209,267,384) 107,330,777 25,000,000 (101,936,606) 97,696,788 205,000,000 (4,239,818) 168,111,485 555,000,000 163,871,667 Terminal Value 245,292,490 223,457,500 203,400,000 350,000,000 13.0% $163,871,667 23.3% 20.9% 3.9 5.0 $78,710,598 PV of COF ($327,085,911) TV of CIF ### Low Demand Scenario: Year 6 7 8 9 10 11 12 Cash Flow ($240,000,000) (240,000,000) 70,000,000 75,000,000 75,000,000 75,000,000 150,000,000 Project cost of capital = NPV @ Year 6 IRR MIRR Payback Discounted payback NPV @ Year 0 PV of Cumulative Cumulative Cash Flow Flows PV ($240,000,000) ($240,000,000) ($240,000,000) (212,389,381) (480,000,000) (452,389,381) 54,820,268 (410,000,000) (397,569,113) 51,978,762 (335,000,000) (345,590,351) 45,998,905 (260,000,000) (299,591,446) 40,706,995 (185,000,000) (258,884,451) 72,047,779 (35,000,000) (186,836,672) Terminal Value 108,217,275 95,767,500 84,750,000 150,000,000 13.0% ($186,836,672) -1.9% 1.7% 100.0 100.0 ($89,741,115) PV of COF ($397,569,113) TV of CIF $438,734,775 Page 6 CASE21 yright 2014 Health ministration Press Page 7 CASE21 Page 8 CASE21 5 6 7 8 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $41,200,000 12,360,000 25,500,000 12,250,000 ($8,910,000) (2,673,000) ($6,237,000) 12,250,000 $6,013,000 $42,436,000 12,730,800 26,010,000 8,750,000 ($5,054,800) (1,516,440) ($3,538,360) 8,750,000 $5,211,640 $43,709,080 13,112,724 26,530,200 6,250,000 ($2,183,844) (655,153) ($1,528,691) 6,250,000 $4,721,309 $45,020,352 13,506,106 27,060,804 4,450,000 $3,443 1,033 $2,410 4,450,000 $4,452,410 10,000,000 0 30,000,000 (5,655,000) $7,513,000 $6,711,640 $6,221,309 $40,297,410 Page 9 CASE21 5 6 7 8 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $63,600,000 19,080,000 25,500,000 12,250,000 $6,770,000 2,031,000 $4,739,000 12,250,000 $16,989,000 $67,416,000 20,224,800 26,010,000 8,750,000 $12,431,200 3,729,360 $8,701,840 8,750,000 $17,451,840 $71,460,960 21,438,288 26,530,200 6,250,000 $17,242,472 5,172,742 $12,069,730 6,250,000 $18,319,730 $75,748,618 22,724,585 27,060,804 4,450,000 $21,513,228 6,453,968 $15,059,260 4,450,000 $19,509,260 10,000,000 0 30,000,000 (5,655,000) $18,489,000 $18,951,840 $19,819,730 $55,354,260 Page 10 CASE21 Page 11 CASE21 END Page 12 STANDARD DEVIATION CALCULATOR INPUT DATA: Branch NPV $0 $0 $0 $0 $0 $0 Joint Probability 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100.0% KEY OUTPUT: E(NPV) = Variance = Standard Deviation = Coefficient of Variation = $0 0 $0 #DIV/0! 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