$1.$ What are the nonfinancial drivers for adding an LTAC facility to the U$.$Va$.$ Health

System? What are potential reasons the board may not approve the project from a

nonfinancial standpoint

$2.$ Using the information in the case and the memo from Karen Mulroney in case

Exhibit $1,$ complete the cash flow projections in the spreadsheet provided. What do

you get for the NPV and IRR of those cash flows? $[$Note: for purposes of your

analysis, please assume a discount rate of $10\%]$

$3.$ Based on your financial analysis, should Fitzgerald propose the LTAC project in

the board meeting?UNIVERSITY OF VIRGINIA HEALTH SYSTEM:

THE LONG$-$TERM ACUTE CARE HOSPITAL PROJECT

LTAC Free Cash Flow Projections