Download the Case study from the Harvard Business Review Website. Read the case thoroughly before attempting...

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Download the Case study from the Harvard Business Review Website. Read the case thoroughly before attempting to answer the following questions. 1. What is discounted cash flow (DCF) analysis, and how is it used to make capital expenditure decisions? 2. Is the need to have an ambulatory surgical center (ASC) so great that it is not necessary to perform a DCF analysis? Why or why not? 3. Emily Tang is suggesting a discount rate (MARR) of 7%. Is that appropriate? Why or why not? Determine what rate should be used for the analysis. 4. Using the information in the case study and the excel template provided on Blackboard, conduct a DCF analysis. 5. Perform sensitivity analysis by creating a series of DCF analysis changing the following parameters: a. Reimbursement growth rate - Include -1%, 2%, and 5%. b. Inpatient Hospital effect on profits - $300,000 and $700,000 c. Procedures per year 2000 and 2600 d. 2030 salvage value - $7 million. 6. Display your sensitivity analysis in a summary table and any appropriate graphs. 7. What recommendations would you make regarding the ASC proposal? This needs to be a thorough analysis and summary based on the information determined in the previous questions. Submission Requirements - 1. Submit the following in a single packet word or pdf. a. Cover page b. Executive Summary c. Supporting analysis 1. Case Summary questions and answers d. References - if you used anything outside of the case materials 2. Submit Excel worksheet used to perform the analysis. Download the Case study from the Harvard Business Review Website. Read the case thoroughly before attempting to answer the following questions. 1. What is discounted cash flow (DCF) analysis, and how is it used to make capital expenditure decisions? 2. Is the need to have an ambulatory surgical center (ASC) so great that it is not necessary to perform a DCF analysis? Why or why not? 3. Emily Tang is suggesting a discount rate (MARR) of 7%. Is that appropriate? Why or why not? Determine what rate should be used for the analysis. 4. Using the information in the case study and the excel template provided on Blackboard, conduct a DCF analysis. 5. Perform sensitivity analysis by creating a series of DCF analysis changing the following parameters: a. Reimbursement growth rate - Include -1%, 2%, and 5%. b. Inpatient Hospital effect on profits - $300,000 and $700,000 c. Procedures per year 2000 and 2600 d. 2030 salvage value - $7 million. 6. Display your sensitivity analysis in a summary table and any appropriate graphs. 7. What recommendations would you make regarding the ASC proposal? This needs to be a thorough analysis and summary based on the information determined in the previous questions. Submission Requirements - 1. Submit the following in a single packet word or pdf. a. Cover page b. Executive Summary c. Supporting analysis 1. Case Summary questions and answers d. References - if you used anything outside of the case materials 2. Submit Excel worksheet used to perform the analysis.

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1Discounted Cash Flow DCF Analysis DCF analysis is a method used to evaluate the attractiveness of an investment opportunity by estimating the present ... View the full answer