Question: Excel Sprradsheet for the answers Net Present Value Calculation Assignment You are working for Scotland Memorial Hospital and have been asked to help senior administration

are working for Scotland Memorial Hospital and have been asked to help

Excel Sprradsheet for the answers

senior administration make a decision regarding the acquisition of a new clinic.

Two local clinics are currently available for sale. Gibson Medical Clinic is

Net Present Value Calculation Assignment You are working for Scotland Memorial Hospital and have been asked to help senior administration make a decision regarding the acquisition of a new clinic. Two local clinics are currently available for sale. Gibson Medical Clinic is being sold for $800,000. Ellerbe Medical Clinic is being sold for $1,000,000. Scotland Memorial's Required Rate of Return is 10% on all investment possibilities. Gibson Medical Clinic has an expected useful life of 10-years, while Ellerbe Medical Clinic has an expected useful life of 20-years. Below are the expected annual net cash-flow for Gibson Medical Clinic. Expected Annual Year Cashflow 1 2017 150,152 2 2018 153,906 3 2019 157,753 4 2020 161,697 5 2021 165,740 6 2022 169,883 7 2023 174,130 8 2024 178,484 9 2025 182,946 10 2026 187,519 Below are the expected annual net cash-flow for Ellerbe Medical Clinic. Expected Annual Year Cashflow 1 2017 2 2018 3 2019 4 2020 5 2021 6 2022 7 2023 8 2024 9 2025 10 2026 11 2027 99,125 102,347 105,673 109,107 112,653 116,314 120,095 123,998 128,028 132,189 136,485 W ation%20Assignment.p CD Page view | A Read aloud | Add textDraw 12 2028 140,920 13 2029 145,500 14 2030 150,229 15 2031 155,112 16 2032 160,153 17 2033 165,358 18 2034 170,732 19 2035 176,281 20 2036 182,010 Using the excel spreadsheet provided, calculate the Net Present Value for each clinic. Please note that the spreadsheet is locked, so you will only be able to enter values into certain fields. Based on your calculation of the Net Present Value...state which of the two clinics you would recommend that Scotland Memorial Hospital purchase. 3 4 5 5 0 1 OLLES Required Rate of Return 1 2 3 4 5 7 8 9 10 Year Total Gibson Medical Clinic Expected Annual Cashflow 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1% Sheet1 Present Value ** 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 201 9 Year H Ellerbe Medical Clinic Expected Annual Cashflow 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Present Value 4 5 7 9 10 1 2 3 45 6 7 8 9 10 Ready 2022 2023 2024 2025 2026 Total Purchase Price Sum of Present Value Net Present Value = Sheet1 Type here to search - 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 Total Purchase Price Sum of Present Value Net Present Value = ||

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