Component of our return on investment project

Assignment Help Financial Management

Reference no: EM131570535

This week’s assignment is the third component of our Return on Investment (ROI) project. The focus of this week’s short paper writing will be to consider the justification of the capital expenditure. Three key aspects should be considered: (1) Amount and type of expenditure (2) Attainment of key decision criteria and (3) Detailed financial analysis. Using pro-forma data attached (A Cost Benefit Analysis- Bardon, C. G., Wang, S. J., Middleton, B., Prosser, L. A., Spurr, C. D., Carchidi, P. J., et al.(2003).. The American Journal of Medicine , 114.) prepare a net present value analysis using the data in the example and substitute the 5% hurdle rate in the problem to a 6% hurdle rate, and prepare a profitability index. Do not consider capital cost reimbursement from third-party payers in your calculation. Finally, consider in your writing how you would factor risk (technology change, Physician acceptance, competition from other HCO’s, accuracy of market data and volume projections) associated with the capital project in your discount rate...should it be increased?

Reference no: EM131570535

Questions Cloud

How the economic political and legal environments affect : In this course, we provided an overview on how the economic, political, and legal environments affect international business operations.

What is the par value of the preferred stock : Assuming there is a stated value, what is the stated value of the common stock? What is the par value of the preferred stock

Porter five forces assignment : Miss Carli has just graduated from the Hospitality program and is set to open up a Portuguese cuisine restaurant, a mid- range menu of $20 with drinks.

Summarize communication self-assessment : Summarize the results of your communication quiz by keeping the following questions in mind: What kind of communicator did you believe you were prior to taking

Component of our return on investment project : This week’s assignment is the third component of our Return on Investment (ROI) project.

Why are appreciation messages important : Why are appreciation messages important? What should they include?

Develop your professional goals and how you achieve them : What do you expect to learn in this course that will help you achieve your academic and professional goals?

Provide a clear explanation of some of the global actions : Provide a clear and specific explanation of some of the global actions advocated by the institution that you have identified.

Traditional message formats in business : Give at least three examples of how podcasts could replace more traditional message formats in business.

User Account

All Pages