Employ sensitivity analysis using the below conditions. Identify the key variables that are critical to accepting ASC proposal (with 7% discount rate). 1) annual rate of increase in number of procedures per year: 1%, 2%, 3% 2) annual rate of change in $ reimbursement per procedure: -1%, 2%, 5% 3) if there is a shift in ASC procedure mix to increase the average reimbursement rate to $2,500 per procedure, the inpatient hospital (CCH) is expected to lose an additional $300,000 per year in operating profit 4) impact on inpatient hospital (CCH) activities: net reduction in CCH operating profit of $300,000, $400,000, and $700,000 per year 5) procedures per year: 2,000, 2,600, and 3,000 6) In 2031, the facility and land are expected to have a market value of $7 million 7) Reimbursements will be collected in 30 and 60 days 8) In your base scenario, change only the discount rate from 7% to 4%, 5% and 6%. How does your NPV change

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To perform a sensitivity analysis on the Acceptance of ASC Proposal we will consider the impact of d... View the full answer