Question
Michigan Home Health is considering opening an office in a new market. The organization has identified the number of home visits, revenue per home visit,
Michigan Home Health is considering opening an office in a new market. The organization has identified the number of home visits, revenue per home visit, and the level of fixed costs of the new office as being the major sources of uncertainty in the investment decision. To get a better understanding of the sensitivity of the new office NPV to these variables, the following data have been assembled:
Change from base case | NPV | ||
# of home visits | Revenue per visit | Level of fixed cost | |
-30% | -$814 | -$57 | $82 |
-20% | -$515 | -$11 | $82 |
-10% | -$216 | $36 | $82 |
0% | $82 | $82 | $82 |
10% | $381 | $129 | $82 |
20% | $680 | $176 | $82 |
30% | $979 | $222 | $82 |
Construct a graph to show the sensitivity of the new office NPV to each variable.
**I am looking for help with the actual steps on how to create the graph in Excel.
thanks!
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started