One Time Costs Land-$10 million (Year 0) Construction- $100 million ($50 M in Year 0 and $50M in Year 1 Medical equipment- $25million (Year 0) Licensing & Consulting- $15M (spread across year 0and 1) Initial Marketing Campaign- $5 million (Year 2) Annual Values Operations & Staff- $11M / year (Year 2+) Maintenance- $2.5M
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One Time Costs |
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Land-$10 million (Year 0) |
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Construction- $100 million ($50 M in Year 0 and $50M in Year 1 |
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Medical equipment- $25million (Year 0) |
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Licensing & Consulting- $15M (spread across year 0and 1) |
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Initial Marketing Campaign- $5 million (Year 2) |
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Annual Values |
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Operations & Staff- $11M / year (Year 2+) |
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Maintenance- $2.5M / year (Year 2+) |
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Tech Updates-$1.5M / year (Year 4+) |
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Overhauls |
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Equipment Repairs- $18M (Year 10) |
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Facilities Upgrades- $25M (Year 15) |
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Revenue |
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From Year 3-10: starts at $60 M, increases by $5 M annually |
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Year 11+: 100M annually |
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Salvage value- $25M (Year 20) |
Assuming an interest rate of 3% per year (effective), calculate the feasibility. You can use either Present Worth Analysis or Equivalent Uniform Worth Analysis. In this part, your calculation should be done without the use of Excel. Show your equations and the results.
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