SOMEONE PLEASE TO HELP ME IN THIS REVISION QUESTION. I HAVE LESS THAN 30 MINUTES PLEASE AND SEND ME THE EXCEL FILE. I BEG YOU DO IT FAST IF YOU ARE ASSIGNED THIS QUESTION. AM REVISING FOR MY PAPER AND ITS NEAR.
A hospital system considering opening a walk-in clinic at the expense of $21,000,000. Operating expenses are estimated to be $6,000 at 30% of the time, $9,000 at 60%, and $12,000 at 10% of the time. The average number of patients served per day is expected to be 500. The clinic is open 365 days per year.
The expected revenue per patient is expected to be as follows: 50% of patients pay $60, 30% of patients pay $80, and 20% of patients pay $100. The clinic is expected to be used at different levels throughout the year. The hospital system wishes to be profitable within three years, where MARR is 22%.
The hospital system is a non-profit entity and does not pay taxes. From an economic point of view, should the hospital open the clinic? Show computations in Excel and provide an interpretation.