1) Does Newton Community have sufficient cash balances to cover the forecast risks in the initial...
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1) Does Newton Community have sufficient cash balances to cover the forecast risks in the initial three years before ASC operations reach full capacity? 2) What crucial assumption if altered, could change the outcome of the analysis? ASC Operating Costs Year 1 Year 2 Year 3 Salaries Physcian, Nursing & Technician S 2,300,000 $ 2,900,000 $ 3,250,000 ASC Facilities maintenance $ 60,000 $ 61,800 $ 63,654 Other salaries $ 175,000 $ 275,000 $ 3:40,000 Medical Supplies $ 175,000 $ 250,000 $ 300,000 Community Outreach and Marketing 45,000 $ 45,000 $ 46,350 Mortgage Payments* $ 96,000 $ 96,000 $ 96,000 Utlilites $ 75,000 $ 90,000 $ 100,000 Malpractice Insurance $ 180,000 $ 185,400 $ 190,962 Other Insurance $ 75,000 $ 77,250 $ 79,568 Savings on Facilities Maintenance $ (185,000) $ (185,000) $ (185,000) Total $ 2,996,000 $ 3,795,450 $ 4,281,534 constant through year 10 1) Does Newton Community have sufficient cash balances to cover the forecast risks in the initial three years before ASC operations reach full capacity? 2) What crucial assumption if altered, could change the outcome of the analysis? ASC Operating Costs Year 1 Year 2 Year 3 Salaries Physcian, Nursing & Technician S 2,300,000 $ 2,900,000 $ 3,250,000 ASC Facilities maintenance $ 60,000 $ 61,800 $ 63,654 Other salaries $ 175,000 $ 275,000 $ 3:40,000 Medical Supplies $ 175,000 $ 250,000 $ 300,000 Community Outreach and Marketing 45,000 $ 45,000 $ 46,350 Mortgage Payments* $ 96,000 $ 96,000 $ 96,000 Utlilites $ 75,000 $ 90,000 $ 100,000 Malpractice Insurance $ 180,000 $ 185,400 $ 190,962 Other Insurance $ 75,000 $ 77,250 $ 79,568 Savings on Facilities Maintenance $ (185,000) $ (185,000) $ (185,000) Total $ 2,996,000 $ 3,795,450 $ 4,281,534 constant through year 10
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