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    Project analysis for surgery procedures: NPV, IRR, MIRR

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    Please prepare a project analysis of the proposed ambulatory surgery center. Please prepare this analysis using two scenarios:
    A. 20 procedures a day and
    B. 25 procedures per day.

    You will need to compute the expected cashflows for the project. The starting point is the calculation of the net income after taxes for the project and then you add the back the non-cash expenses. Then you will need to perform a capital budgeting analysis for the project including the following methods:

    1. Net Present Value
    2. Internal Rate of Return
    3. Modified Internal Rate of Return
    4. Payback
    4. Discounted Payback
    6. Accounting Rate of Return
    7. Profitability Index

    Monte Carlo Simulation is not required for this case.

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    Solution Preview

    The answers are in the attached spreadsheet. I have done the 2 scenarios (20 procedures a day and 25 procedures ...

    Solution Summary

    The solution presents a comprehensive analysis of expected cash flows, a capital budgeting analysis, ratio calculations for two different levels of service for a propsed ambulatory surgery center.