Read Case 20 (pages 127-132) from Gapenski’s Cases in Healthcare Finance – “Coral Bay Hospital.” SEE ATTACHMENT.
Create a presentation.
In your presentation, provide a response to the following questions from the case study:
- What are the NPV, IRR, MIRR, and payback of the proposed ambulatory surgery center? Do the measures indicate acceptance or rejection of the proposed ambulatory surgery center?
- One board member wants to make sure that a complete risk analysis, including sensitivity and scenario analyses, is performed before the proposal is sent to the board.
- Perform a sensitivity analysis.
- What management information is provided by the sensitivity analysis?
- Perform a scenario analysis.
- What management information is provided by the scenario analysis?
- Why is the expected NPV obtained in the scenario analysis different from the base case NPV?
- A board member is interested in the utilization breakeven of the Center.
- What are the breakeven values of the three input variables that are highly uncertain?
- What management information is provided by the breakeven analysis?
For some additional guidance on how to construct a professional presentation, please see the link below.