Break-even financial, It will cost $3000 per year to

Break-even financial

Assignment Help Accounting Basics

Reference no: EM13913733

The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care van to use in screening residents in an underserved local neighborhood. The van will last 5 years and costs $68,000. WCHC will pay for the acquisition and maintenance of the van partially from foundation grants and partially from receipts from the county health department. The county has agreed to reimburse WCHC $15 for each patient it screens using the new van. They expect to have 800 patients per year with the van. It will cost $3000 per year to maintain the vehicle, which includes all relevant costs. How much will the WCHC need in foundation grants this year to make the purchase break-even financially?

Hint: What is the net present value of the costs of buying and operating the van per its lifetime, less the payments that will be received from the county? Are the payments from the county sufficient? If not, how much must be raised in grants before the van is purchased?

Reference no: EM13913733

Questions Cloud

What is the opportunity cost of capital : Eastern Electric currently pays a dividend of about $1.96 per share and sells for $33 a share. If investors believe the growth rate of dividends is 4% per year, what is the opportunity cost of capital? If investors' opportunity cost of capital is 10%..

Discontinued operations : discontinued operations-extraordinary items earnings per share date

Machine models are being considered for ongoing operation : Three alternative machine models are being considered for an ongoing operation. The three alternatives will be used in the production of the same product. Therefore, the selection among the three will be based on total costs.

Find the amount of work done by the boy : A body of mass m1 standing on a smooth plane of ice throws a ball of mass m2 horizontally on the surface of ice. If x be the distance between them after a time t, then find the amount of work done by the boy in throwing the ball?

Break-even financial : It will cost $3000 per year to maintain the vehicle, which includes all relevant costs. How much will the WCHC need in foundation grants this year to make the purchase break-even financial

Justin holmes an ex-employee is entitled to a taxable : Justin Holmes, an ex-employee, is entitled to a taxable fringe benefit during the first part of this year. Because he wasn't paid any wages this year, can his employer report the taxable fringe benefit on Form 1099?

Calculate the term of a mortgage assuming an interest rate : Calculate the term of a mortgage assuming an interest rate of 7.75%, a monthly payment of $2,212.76, and an original loan amount of $280,000.

Cash receipts-cash disbursements when preparing cash budgets : [Short-Term Financial Planning] The Itsar Products Company has made the following monthly estimates of cash receipts and cash disbursements when preparing cash budgets for the next twelve months. Determine whether the cash need (if any) can be repaid..

New basis in the partnership : The partnership gave him a $75,000 distribution in 2014. What is his new basis in the partnership

User Account

All Pages