QUESTION Wellington Hospitalis considering purchasing a new surgical robot to performinima venee replacement surgal procedures. The hospital anticipates needing the equipment for the next years to support their Initiative to reduce costs and improve outcomes following this common procedure. Youve been asked to evaluate this po v estment opportunity to this for your collected the following information associated with this project The hos p ects to per procedures in the first year of ownership and one word of the wesome new tools h out the repon, they this volume to increase by in each subsequent year Each robe tenere per regres a dug o ngument and chemicals disposable cutting tools and suturing The system cost 52.250.000 and will be deprecated according to a 7 year MACRS schedule station and set-up costs for the new system are $120.000 . Calibration of the robot will be requred each year to keep the machine in good working order. Calibration is estimated to cost $450.000 each year, with the first calibration occurring at the end of the first year of use The robot has a useful fe of 4 years. At the end of this time its salvage value will be 31.100.000 Performing minimal invenee replacement surgeries will save the hospital $400 per patient due to shorter recovery times and therefore fewer days of stay per pace and $1.275.000 per year from the reduced procedure time includes salaries supplies ) Half of the totalita investmentbetraced through a banan This w o rtofon per year h a s made end of each year for the next four years You n d that anni s on of $120.000 of won d ed the start of the project. This will be covered in the end of the project The hose Use the net present worth approach to determine if this is a worthw e stment for the hospital Support your answers by b ing the income and cash flow statements for this problem. An exemplate is attached to .. TTTT Pagr . An . 30 XDOQEZETT 3. T. -- Click Save and submit to me and the l o wlane QUESTION 4 Wellington Hospital is considering purchasing a new surgical robot to perform minimally invasive knee replacement surgal procedures. The hospital anticipates needing this equipment for the next 4 years to support their initiative to reduce costs and improve outcomes following this common procedure. You've been asked to evaluate the potential investment opportunity. To assist this effort you've collected the following information associated with this project. The hospital expects to perform 1200 knee replacement procedures in the first year of ownership and once word of the awesome new robotic surgkal tool spreads throughout the region, they anticipate this volume to increase by 10% in each subsequent year. Each robot assisted knee replacement surgery requires 1475 in materials including sta tion equipment and chemicals, disposable cutting tools and suturing its The system costs $3.250.000 and will be depreciated according to a 7 year MACRS schedule Installation and set-up costs for the new system are $120.000 Calibration of the robot will be required each year to keep the machine in good working order. Calibration is estimated to cost $450,000 each year, with the first calibration occurring at the end of the first year of use The robot has a useful life of 4 years. At the end of this time its salvare value will be $1.800.000 Performing minimally invasive knee replacement surgeries will save the hospital 5400 per patient due to shorter recovery times and therefore fewer days of stay per patient) and 51.275,000 per year from the reduced procedure time includes salaries, supplies, etc.) Half of the total initial investment will be financed through a bank loan. This loan will have a rate of 10 per year with payments made at the end of each year for the next four years. You've determined that an initial infusion of $120.000 of working capital is needed at the start of the project. This sum will be recovered in full at the end of the project. . The heals MARR S 13 Ordinary and capital gains are taxed at the combined marginal tax rate of 34 Use the net present worth approach to determine this is an worthwhile investment for the hospital Support your answers by building the income and cash flow statements for this problem. An excel template is attached to help your efforts QUESTION Wellington Hospitalis considering purchasing a new surgical robot to performinima venee replacement surgal procedures. The hospital anticipates needing the equipment for the next years to support their Initiative to reduce costs and improve outcomes following this common procedure. Youve been asked to evaluate this po v estment opportunity to this for your collected the following information associated with this project The hos p ects to per procedures in the first year of ownership and one word of the wesome new tools h out the repon, they this volume to increase by in each subsequent year Each robe tenere per regres a dug o ngument and chemicals disposable cutting tools and suturing The system cost 52.250.000 and will be deprecated according to a 7 year MACRS schedule station and set-up costs for the new system are $120.000 . Calibration of the robot will be requred each year to keep the machine in good working order. Calibration is estimated to cost $450.000 each year, with the first calibration occurring at the end of the first year of use The robot has a useful fe of 4 years. At the end of this time its salvage value will be 31.100.000 Performing minimal invenee replacement surgeries will save the hospital $400 per patient due to shorter recovery times and therefore fewer days of stay per pace and $1.275.000 per year from the reduced procedure time includes salaries supplies ) Half of the totalita investmentbetraced through a banan This w o rtofon per year h a s made end of each year for the next four years You n d that anni s on of $120.000 of won d ed the start of the project. This will be covered in the end of the project The hose Use the net present worth approach to determine if this is a worthw e stment for the hospital Support your answers by b ing the income and cash flow statements for this problem. An exemplate is attached to .. TTTT Pagr . An . 30 XDOQEZETT 3. T. -- Click Save and submit to me and the l o wlane QUESTION 4 Wellington Hospital is considering purchasing a new surgical robot to perform minimally invasive knee replacement surgal procedures. The hospital anticipates needing this equipment for the next 4 years to support their initiative to reduce costs and improve outcomes following this common procedure. You've been asked to evaluate the potential investment opportunity. To assist this effort you've collected the following information associated with this project. The hospital expects to perform 1200 knee replacement procedures in the first year of ownership and once word of the awesome new robotic surgkal tool spreads throughout the region, they anticipate this volume to increase by 10% in each subsequent year. Each robot assisted knee replacement surgery requires 1475 in materials including sta tion equipment and chemicals, disposable cutting tools and suturing its The system costs $3.250.000 and will be depreciated according to a 7 year MACRS schedule Installation and set-up costs for the new system are $120.000 Calibration of the robot will be required each year to keep the machine in good working order. Calibration is estimated to cost $450,000 each year, with the first calibration occurring at the end of the first year of use The robot has a useful life of 4 years. At the end of this time its salvare value will be $1.800.000 Performing minimally invasive knee replacement surgeries will save the hospital 5400 per patient due to shorter recovery times and therefore fewer days of stay per patient) and 51.275,000 per year from the reduced procedure time includes salaries, supplies, etc.) Half of the total initial investment will be financed through a bank loan. This loan will have a rate of 10 per year with payments made at the end of each year for the next four years. You've determined that an initial infusion of $120.000 of working capital is needed at the start of the project. This sum will be recovered in full at the end of the project. . The heals MARR S 13 Ordinary and capital gains are taxed at the combined marginal tax rate of 34 Use the net present worth approach to determine this is an worthwhile investment for the hospital Support your answers by building the income and cash flow statements for this problem. An excel template is attached to help your efforts