RK 10-43 (Aigo) Net-rresent-vaiue Anarysis; mospital (Dection 1 ) (LU 10-1, 10-3) Allegheny Community Hospital is a nonprofit hospital operated by the county. The hospitar's administrator is considering a proposal to open a new outpatient clinic in the nearby city of New Castle. The administrator has made the following estimates pertinent to the proposat. 1. Construction of the clinic buliding will cost $720,000 in two equal installments of $360,000, to be paid at the end of 200 and 201. The clinic will open on January 2,202, All staffing and operating costs begin in 202. 2. Equipment for the clinic will cost $75,000,10 be paid in December of 201. 3. Stafing of the clinic wil cost $600,000 per year, 4. Other operating costs at the clinic will be $90,000 per year. 5. Opening the clinic is expocted to increase charitable contributions to the hospital by $150,000 per year. 6. The clinic is expected to reduce costs at Allegheny Community Hospital. Annual cost savings at the hospital are projected to be $800,000. 7. A major refurbishment of the clinic is expected to be necessary toward the end of 20x5. This work will cost $105,000, 8. Due to shifting medical needs in the county, the administrator doubts the clinic will be needed after 20x9. 9. The clinic bullding and equipment could be sold for $150,000 at the end of 209. 10. The hospital's hurdle rate is 12 percent Use Appendix A for your reference: Note: Use appropriate factor(s) from the tables provided. Required; 1-3. Fill in the following table to compute the net present value of the proposed outpatient clinic 4. Should the administrator recommend to the hospital's trustees that the clinic be buit? Fill in the folowing table to compute the net present value of the proposed autpatient clinic Note: Negstive amounts should be indicated by a minus sign. Round your "Diccount fectors" to 3 decimal olaces