Question: please help PR 16-43 (Algo) Net-Present-Value Analysis; Hospital (Section 1) (LO 16-1, 16-3) Alleghery Community Hosptal is a nonprofit hospital operated by the county. The

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please help PR 16-43 (Algo) Net-Present-Value Analysis; Hospital (Section 1) (LO 16-1,

PR 16-43 (Algo) Net-Present-Value Analysis; Hospital (Section 1) (LO 16-1, 16-3) Alleghery Community Hosptal is a nonprofit hospital operated by the county. The hospitaf's administratior is considering a proposal to open o new outpatient clinic in the nearby city of New Castie. The administrator has made the following estimates pertinent to the pcoposai. 1. Construction of the clinic bulding will cosk $820.000 in two equal instatiments of 5410,000 , to be paid at the end of 20 in and 20x1 The clinic wil open on January 2,202 Al stathing and operating costs begin in 202 2. Equipment for the clinic will cost $100,000, to be paid in December of 20xd 3. Stalfing of the clinic will cost $700.000 per year 4. Other operating costs at the clinic will be 5130,000 per year 6. Opening the clinuc is expected to increase chariable contributions to the hospital by $200000 per year 6. The clinic is expected to reduce costs at Allegheny Community Hospieal. Annual cost savings at the hospital are projected fo be $900000 7. A mafor refurbishment of the clinic is expected to be necessary toward the end of 2005 , This work will cost 5130000 . 8. Dhie to shifiey medical needs in the county, the administrator doubts the clinic wal be needed after 20 a 9 9. The clinic buliding and equpment could be sold for 5200,000 at the end of 209. 10. The hospitars thurdie rate is 12 percent. Use Agpendix A for your reference. Note: Use oppropriate foctor(s) from the tables provided. Required: 1-3. Fill in the following table to compute the net present value of the proposed outpatient clinic 4. Should the administrator recommend to the hospitars trustees that the clinic be buit? Complete this question by entering your answers in the tabs belew. Fill in the following table to compute the net present valoe of the preposed ootsatient clinlc

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