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# Project Analysis Case Study

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Complete Case 20: National Rehabilitation Centers:
Assist with providing ideas for writing a case review that addresses a staged entry analysis that includes quantitative and qualitative factors, conclusions and recommendations.

AMERICAN REHABILITATION CENTERS
Staged Entry Analysis

This case is designed to give further insight into the capital budgeting decision process. It
focuses on the timing and relevancy of cash flows, the use of decision trees, abandonment,

The model calculates NPV, IRR, MIRR, payback, and discounted payback on the basis of
input data for two stages of a project. Note that the model extends to Column K.

The model consists of a complete base case analysis--no changes need to be made
to the existing MODEL-GENERATED DATA section. However, all values in the student
version INPUT DATA section have been replaced with zeros. Thus, students must determine
the appropriate input values and enter them into the model. These cells are colored red.
When this is done, any error cells will be corrected and the base case solution will appear.
However, students must create their own graphics (charts) as needed to present their results.

Note that the model contains a second sheet to help with the risk calculations. Here, users
enter the NPVs and joint probabilities of each branch of the decision tree and the model
calculates expected NPV, variance, standard deviation, and coefficient of variation.

#### Solution Preview

See the attached files.

American Rehabilitation Centers: Staged Entry Analysis

Qualitative Factors:

There are two proposals related with the expansion. One is proposal A and the other is Proposal B. Proposal A is the low cost alternative (roughly \$400 million) as compared to Proposal B (\$570 million). Although Proposal A has capabilities to save cost an increase the return on investment but at the same time it has high risk of failure if things go wrong. Proposal B has 2 stages, stage one is a trial program covering only one of nine regions of ARC that will offer sports medicine service. If the expectation from stage 1 is met the company would enter in stage 2 covering rest of the regions. This indicates that Proposal B has ...

#### Solution Summary

The solution discusses the project analysis case study.

\$2.19

If you can present this in a PPT format this will be most helpful! Use attached PPT as your guide. Thank you very much.

Please read the case study and provide input that will help me with a presentation and grasp understanding of the material and layout in a Story Board format (attached). This is to be an objective analysis. Key issues I'm interested in include:

a. What are the critical factors? How did the project(s) in the case study align, or not align with the organization's goals, and how did that alignment or lack thereof, contribute to the results. A full but concise analysis of the situation the business is in and how the actions taken were or were not in alignment with the organization's goals and how that contributed to business results. Include additional support and clarification around one or more of the situational findings in the case.

b. What are alternative solutions? How did the organization come to choose its project(s) and solution(s) and what were the advantages and disadvantages of those choices? Weigh alternative solutions and include a discussion of advantages and disadvantages of the choices. Challenge the results of the case study by describing other factors that might have impacted the results.

c. What is the recommended solution? What adjustments to the project selection process would you have made? Include support for the case or offer alternative project selection processes and criteria and defend how they would better apply in the case study. Include a number of other project selection processes and criteria and successfully defend elimination of those that weren't chosen.

d. What is the action plan? What recommendation do you have for this company to implement a better project selection prioritization process? Include clear analysis with more than one option or course of action that might be used to prioritize projects in the organization, recommend a methodology, and provide logical support for the recommendation. Assess the value of the options not chosen as well as supporting the recommended option.

Please do not copy, cut & paste text, copy from previous postings, or provide instructions on "how-to" from various internet sites as a response. I am also looking for perspective from an expert in this area or industry!

Thank you kindly for your assistance.

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