The new facility will result in some surgeries being moved from inpatient hospital. Whether or not Coral
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The new facility will result in some surgeries being moved from inpatient hospital. Whether or not Coral Bay builds the outpatient facility, a competing hospital across town will build a facility. In other words, Coral Bay cannot deter the competitor from building a facility. The decrease in after-cost revenues to the inpatient hospital should- Be ignored in the calculation of the NPV for the outpatient facility
- Be included in the calculation of the NPV for the outpatient facility and the NPV will increase as a result
- Be included in the calculations of the NPV for the outpatient facility and the NPV will decrease as a result
- To do the project, the managers must believe that the center will so more than 18 procedures per day. True or False
- A higher payback indicated a project with lots of liquidity. True or False
- To do the projects, the managers must believe that the center will earn more than $850 per procedure. True or False
- The $50,000 for land improvement should be included in the incremental cash flow. True or False
- If average revenue from procedures increases 20%, the NPV is over $8 million. True or False
- Which should Coral Bay focus on more?
- Payor negotiations
- Land value negotiations
- A project with larger flows later in time indicated a less risky project. True or False
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