Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pls answer all parts for Upvote Variables 2018 2019 2020 2021 Count of new installations Running total of offices with systems installed One-time installation cost
Pls answer all parts for Upvote
Variables 2018 2019 2020 2021 Count of new installations Running total of offices with systems installed One-time installation cost per office Annual operating cost per office Annual meaningful use payments per physician Physicians per office Business days per physician per year Revenue increase per additional patient NPV Rate 3 8 15 15 102000 21000 6000 220 110 10% Costs 2018 2019 2020 2021 Installation costs 306,000.00 510,000.00 714,000.00 Operating costs 63,000.00 168,000.00 315,000.00 315,000.00 Total Annual Costs 369,000.00 678,000.00 1,029,000.00 315,000.00 Benefits 2019 2018 36,000.00 2020 2021 Meaningful use payments Additional patient revenue 96,000.00 180,000.00 180,000.00 145.200.00 387,200.00 726,000.00 726,000.00 181,200.00 483,200.00 906,000.00 906,000.00 Total Annual Benefits Break NPV, and IRR Calculations 2018 (187,800.00) (194,800.00) (123,000.00) 591,000.00 187 800.00) (382,600.00) (505,600.00) 85,400.00 2019 2020 2021 Net Annual Benefits Break-Even Totals (Accumulated Net Benefits) Net Present Value (NPV) 20,469.78 Internal Rate of Return (IRR) 7.53% Questions Based on the variables provided, in what year will the project break even? Based on the target rate of return of 10%, should the physician's group go forward with this project? In what year will the project break even if the profit increase per additional patient improves to $160? What is the NPV if the annual operating costs per office are decreased by $2,000
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