Florida Keys Hospital, Project Analysis, contains a traditional (no twists) capital budgeting analysis, including cash flow estimation, decision measures, risk assessment, and risk incorporation. In evaluating the financial attractiveness of a proposed outpatient surgery center, you will be confronted with many of the problems that occur in such analyses. An accompanying spreadsheet model helps with the calculations.
There are three relevant files to access here to solve the case. The first provides the narrative about the case and questions to consider in your analysis. The second is an excel spreadsheet, and includes computer models and financial statements. There is a section for you to input data, and the model will calculate such things as NPV, IRR, etc. (Click on ‘Case 19’ when you get to the site hosting the spreadsheet). Most of the work involved is on interpretation and evaluation. I have also added a sample, or template, of what the inflation impact table should look like.