HCAD 645 UMGC Capital Budgeting & Project Risk Analysis Presentation – Description
Read Case 20 (pages 127-132) from Gapenski’s Cases in Healthcare Finance – “Coral Bay Hospital.”
Create a presentation, suitable for presentation to a senior level executive.
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?
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