CASE22Page 1CASE 22Student Version8/13/13NORTHWEST SUBURBAN HEALTH SYSTEMMake or Buy AnalysisThis case examines three alternatives for handling the printing needs within a large healthsystem. The case emphasizes cash flow analysis and cost of capital considerations for bothnot-for-profit and for-profit subsidiaries.The model calculates NPV, IRR, and MIRR on the basis of input data for three differentprinting alternatives. Note that the model extends out to Column H.The model consists of a complete base case analysis—no changes need to be madeto the existing MODEL-GENERATED DATA section. However, all values in the studentversion INPUT DATA section have been replaced with zeros. Thus, students must determineWhen this is done, any error cells will be corrected and the base case solution will appear.Note that the model does not contain any risk analyses, so students will have to create(charts) as needed to present their results.Finally, note that the some of the inputs regarding the new (incremental) values associatedwith expanding the printshop are somewhat difficult to identify, so students using the studentversion of this model need to be careful when choosing these values.