Reference no: EM1369993
San Joaquin Community Hospital is a nonprofit hospital operated by the county. The hospital's administration is considering a proposal to a new outpatient clinic in the nearby city of San Marco. The administrator has made the following estimates pertinent to the proposal:
1. Construction of the clinic building will cost $780000 in two equal installments of $390000, to be paid at the end of 20x0 and 20x1. The clinic will open on January 2, 20x2. All staffing and operating costs begin in 20x2
2. Equipment for the clinic will cost $150000, to be paid in December 20x1
3. Staffing on the clinic will cost $800000 per year
4. other operating costs at the clinic will be $200000 per year
5. Opening the clinic is expected to increase charitable contributions to the hospital y $250000 per year
6. The clinic is expected to reduce costs at San Joaquin Community Hospital. Annual cost savings at the hospital are projected to be $1000000.
7. A majoro refurbishment of the clinic is expected to be necessary toward the end of 20x5. this work will cost $180000
8. Due to shifting medical needs in the county, the administrator doubts the clinic will be needed after 20x9
9. The clinic building and equipment could be sold for $290000 at the en of 20x9
10. The hospital's hurdle rate is 12 percent
Required:
1. Evaluate the cash flow for each year relevant to the analysis
2. Make a table of cash flows, by year
3. Compute the net present value of the proposed outpatient clinic
4. Should the administrator recommend the hospital's trustees that the clinic be built? why?
5. Develop a spreadsheet and show how the solution will change if the following information changes: staffing will cost 790000 per year, and the increased charitable contributions will be $265000.
|
Determining level of output and profit
: Suppose a firm in the short run under perfect competition with P=250, TC=1,000 + 100Q + 2.5Q^2 , and MC=10+5Q-Find out the level of output that the firm needs to produce to maximize profits?
|
|
The invisible hand theory
: The invisible hand theory which essentially says, people through pursuing their own economic self interest, help allocate resources in the economy as if an invisible hand is at work to do so.
|
|
Explain what are the three most important ethical principles
: Explain What are the three most important ethical principles that you feel organizations should adhere to in terms of their staffing philosophies and Why
|
|
Create algorithm prompt for and receive employee number
: Create algorithm which will prompt for and receive the employee number from operator at terminal. Your program is to search array of valid employee numbers to check that employee number is XXXXX,
|
|
Description of cash flow analysis
: Evaluate the cash flow for each year relevant to the analysis. Make a table of cash flows, by year. Compute the net present value of the proposed outpatient clinic. Should the administrator recommend the hospital's trustees that the clinic be built? ..
|
|
Community at large benefit organization operationally
: How does the concept of incorporating the opinion of the work community and community at large benefit the organization operationally?
|
|
Employment equilibrium level
: Suppose that in 2012, the following prevails in the Republic of Askil; Suppose that households consume 75% of their income and save 25% of their income.
|
|
Use shared mutex for synchronization and locking mechanism
: Execute two programs of matrix multiplication with thread programming. Use the shared mutex for synchronization and locking mechanism.
|
|
Keynesian consumption function
: Show analytically and show graphically that, in Keynesian consumption function, the average propensity of consumption is always bigger that marginal propensity
|