Question: 4. a. Perform a scenario analysis.b. What management information is provided by the scenario analysis? c. Why is the expected NPV obtained in the scenario
4. a. Perform a scenario analysis.b. What management information is provided by the scenario analysis? c. Why is the expected NPV obtained in the scenario analysis different from the base case NPV?
This question comes from Coral Bay Hospital case study. I am doing a scenario where worse case scenario 25%, most likely-50%, best case-25% with respect to procedures....10, 20, 25, Revenue of 800,1000,1200 and salvage value 4,000,000,,5,000,000,,6,000,000
NPV=875,000. I need to find Exp, SD, CV=SD/Exp value.
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