Question: Perform both a sensitivity analysis for this case. Perform a scenario analysis with the the worst case scenario, best case scenario and...

Payback             4.1

Why does the NPV value obtained in a scenario analysis differ from the base NPV value?

Part 5. What are the breakeven values of the three input variables that are highly uncertain?

Part 6 To help with the risk-incorporation phase of the analysis, Jules Bergman consulted with the hospitals CFO about both the risk inherent in the hospital's average project and how the hospital typically adjusts for risk. a. What is the project's differential risk-adjusted NPV? b. Assess the corporate risk of the project. (No calculations are required. Think about the correlation between the surgery center and hospital cash flows.)