present value of profit over the three$-$year horizon and analyze the summary statistics using $50$ trials. Summarize your conclusions. Use a discount rate of $3\%.$analyze the summary statistics using $50$ trials. Summarize your conclusions. Use a discount rate of $3\%.$

Click here to view the descriptions of the model.

Click here to view a sample of $50$ simulation trial results.

uncertain values with triangular distributions.

The net present value is $q$ thousand.

$($Round to the nearest thousand dollars as needed.$)$

$($Round to the nearest thousand dollars as needed.$)$

Model description

For the first year, the anticipated number of

patients served is uniform between $1,200$ and

$1,700.$ The growth rate for subsequent years

is triangular with parameters $(5\%,8\%,9\%),$

and the growth rate for year $2$ is independent

of the growth rate for year $3.$ Average billing is

normal with mean of $$150,000$ and standard

deviation $$12,000.$ However, because of

managed care, the center collects only $30\%$ of

billings. Variable costs for supplies and drugs

are calculated to be $10\%$ of billings. Fixed

costs for salaries, utilities, and so on will

amount to $$20,000,000$ in the first year and

the annual increase in fixed costs is uniform

between $4\%$ and $6\%$ and independent of other

years.analyze the summary statistics using $50$ trials. Summarize your conclusions. Use a discount rate of $3\%.$

Click here to view the descriptions of the model.

Click here to view a sample of $50$ simulation trial results.

uncertain values with triangular distributions.

The net present value is $ thousand.

$($Round to the nearest thousand dollars as needed.$)$

$($Round to the nearest thousand dollars as needed.$)$

Model description

For the first year, the anticipated number of

patients served is uniform between $1,200$ and

$1,700.$ The growth rate for subsequent years

is triangular with parameters $(5\%,8\%,9\%),$

and the growth rate for year $2$ is independent

of the growth rate for year $3.$ Average billing is

normal with mean of $$150,000$ and standard

deviation $$12,000.$ However, because of

managed care, the center collects only $30\%$ of

billings. Variable costs for supplies and drugs

are calculated to be $10\%$ of billings. Fixed

costs for salaries, utilities, and so on will

amount to $$20,000,000$ in the first year and

the annual increase in fixed costs is uniform

between $4\%$ and $6\%$ and independent of other

years.

Simulation Results

Click here to view the descriptions of the model.

Click here to view a sample of $50$ simulation trial results.

Set up a spreadsheet model and calculate the net present value for the profits in thousands of dollars using the minimum for uncertain values with uniform distributions, the mean for uncertain values

with normal distributions, and the most likely values for uncertain values with triangular distributions.

The net present value is $

thousand.

$($Round to the nearest thousand dollars as needed.$)$

Based on the provided simulations, the mean net present value of the profits over the next three years is $ thousand, the standard deviation is $ thousand, the minimum is $ thousand, and

the maximum is $

thousand.

$($Round to the nearest thousand dollars as needed.$)$

Trial NPV

$1=80844$

$2=71397$

$3=60385$

$4=77655$

$5=83515$

$6=50167$

$7=77758$

$8=49723$

$9=66184$

$10=70500$

$11=84583$

$12=50616$

$13=81072$

$14=92008$

$15=99227$

$16=91837$

$17=62394$

$18=41475$

$19=68237$

$20=94945$

$21=88951$

$22=73227$

$23=49774$

$24=86293$

$25=92696$

$26=69671$

$27=85495$

$28=68324$

$29=66538$

$30=84322$

$31=45661$

$32=78028$

$33=60008$

$34=93946$

$35=54092$

$36=61350$

$37=92296$

$38=83840$

$39=94515$

$40=62838$

$41=104795$

$42=91479$

$43=84601$

$44=78264$

$45=89922$

$46=97344$

$47=72310$

$48-83371$

$49-70078$

$50-62264$