Coral Bay Hospital (Case #20, pp. 133-138)
Question # 00229583
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Updated on: 03/22/2016 03:04 PM Due on: 04/21/2016
Coral Bay Hospital (Case #20, pp. 133-138)
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.
[HINT: For each input-- number of procedures, average revenue per procedure, and building/equipment salvage value-- use the spreadsheet to determine the NPV when the specific input changes by -30%, -20%, -10%, … 30%. Create a graph of the NPV versus percent change from the base case for each input (i.e. you should have three lines).]
What management information is provided by the sensitivity analysis?
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Rating:
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