Page 36 - Demo

Business Case Example
Total Corneal Astimatism
Investment calculation for Total Corneal Astigmatism module
What is the total difference in income for a premium case vs standard case for physician
975
What is a reasonable ROA for the physician
25%
Estimated annual risk free rate
3%
How much does the Medicare/ Medicaid cut entail
Used to be 654,47; will become 557,58; difference: 96,89
When does the cut start
2020
What is the expected product life time?
Number of cataract cases/yr for the center
5 years
2000
So IRR =
25%
Upfront investment in Cassini
44.999
35 LED License/year
10.000
Warranty xtentions/year
1.500
2020
2021
2022
2023
2024
Investment
(44.999)
(11.500)
(11.500)
(11.500)
Return required (adjust cell B21 to get cell A24 close to 0)
18.750
18.750
18.750
18.750
18.750
Net cash flow
26.249
18.750
7.250
7.250
7.250
NPV = 0 @ 25% IRR
(58,08) (Value needs to be close to 0)
So IRR =
3%
Upfront investment in Cassini
44.999
Warrany+licence extentions/year
36
SALES