Using Excel

1. You are buying a robotic surgical assistant that will last for ten years. Every year your hospital will pay $400,000 to the seller. The annual discount rate is 5%. What is the NPV of this robot? What is the NPV if the discount rate is lowered to 4.5%?

2. Using the NPV from above as fixed cost (assuming the discount rate of 4.5%), calculate the breakeven point with the following information: the surgical team has five fulltime surgeons, ten fulltime nurses, five fulltime technicians, and ten half-time interns. For every procedure with the robotic assistant, the labor cost is $30 per FTE. The non-labor cost per procedure is $250. The hospital receives $2000 for each procedure.

3. To finalize the decision as to whether to buy the robot, you also need to forecast the annual number of robotic-assisted procedures. For the first six months, you see the monthly number of robotic-assisted surgical procedures as below. Please forecast the monthly number of procedures for the next six months (reporting integer numbers, please). What will be this year's total number of procedures, based on your forecast?

Month	number of robotic-assisted procedures
1	18
2	19
3	12
4	20
5	21
6	20