Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The picture is blurry so i typed the question out. A surgery center specializes in high risk cardiovascular surgery. The center needs to forecast its

image text in transcribed
The picture is blurry so i typed the question out.
A surgery center specializes in high risk cardiovascular surgery. The center needs to forecast its profitability over the next 3 years to plan for capital growth projects. For the first year, the hospital anticipates, serving 1300 patients, which is expected to grow by 9% per year. Based on current reimbursement formulas each patient provides an average billing of $125,000 which will grow by 4% each year. However, because of managed care the center only collects 25% of Billings. variable cost for supplies and drugs are calculated to be 10% of Billings. Fixed cost for salaries, utilities and so on will amount to $20 million in the first year and are assumed to increase by 6% per year. develop a spreadsheet model to predict the net present value of profit over the next three years. Use the discount rate of 4%.
image text in transcribed
please help!!
The net present valise of profit over the next three years is $ The net present valise of profit over the next three years is $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Inflation Growth And International Finance

Authors: Alec Cairncross

1st Edition

113865308X, 978-1138653085

More Books

Students also viewed these Finance questions

Question

What is RAID?

Answered: 1 week ago

Question

Explain the difference between a broker and dealer.

Answered: 1 week ago