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Year #1 Year #3 Projected Surgical Cases Year #2 150 100 200 Year #4 250 Year #5 250 Gross Revenue per Case $7,000 $7,175 $7,354 $7,538 $7,727 Incremental Revenue: Gross Revenue Contractual Adjustments (55%) Net Incremental Revenue $700,000 $1,076,250 $1,470,875 $1,884,559 $1,931,673 ($385,000) ($591,938) ($808,981) ($1,036,507) ($1,062,420) $315,000 $484,313 $661,894 $848,051 $869,253 Incremental Costs: Staffing Costs Medical Supplies Robot Lease Total incremental Costs $175,000 $210,000 $250,000 $635,000 $180,250 $216,300 $250,000 $646,550 $185,658 $222,789 $250,000 $658,447 $191,227 $229,473 $250,000 $670,700 $196,964 $236,357 $250,000 $683,321 Incremental Gain/(Loss) ($320,000) ($162,238) $3,447 $177,351 $185,932 A NPV @ 4% ($150,202.27) Maior Assumptions: 5 year operating lease with no residual value Cases represent new volume to the system Payor mix will remain constant Staffing and Supplies are the only material variable expenses associated with these cases Review the attached Pro Forma document and provide your assessment on whether the health care organization should invest in the surgical robot. Adhere to proper APA citation requirements Year #1 Year #3 Projected Surgical Cases Year #2 150 100 200 Year #4 250 Year #5 250 Gross Revenue per Case $7,000 $7,175 $7,354 $7,538 $7,727 Incremental Revenue: Gross Revenue Contractual Adjustments (55%) Net Incremental Revenue $700,000 $1,076,250 $1,470,875 $1,884,559 $1,931,673 ($385,000) ($591,938) ($808,981) ($1,036,507) ($1,062,420) $315,000 $484,313 $661,894 $848,051 $869,253 Incremental Costs: Staffing Costs Medical Supplies Robot Lease Total incremental Costs $175,000 $210,000 $250,000 $635,000 $180,250 $216,300 $250,000 $646,550 $185,658 $222,789 $250,000 $658,447 $191,227 $229,473 $250,000 $670,700 $196,964 $236,357 $250,000 $683,321 Incremental Gain/(Loss) ($320,000) ($162,238) $3,447 $177,351 $185,932 A NPV @ 4% ($150,202.27) Maior Assumptions: 5 year operating lease with no residual value Cases represent new volume to the system Payor mix will remain constant Staffing and Supplies are the only material variable expenses associated with these cases Review the attached Pro Forma document and provide your assessment on whether the health care organization should invest in the surgical robot. Adhere to proper APA citation requirements

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