How do we calculate the npv

Assignment Help Financial Management

Reference no: EM131854699

Provide 75-word count response to the discussions below and provide a reference for each

Can refer to the course text as well:

Zelman, W. N., McCue, M. J., & Glick, Thomas, N. D. M. S. (2014). Financial Management of Health Care Organizations (4th ed.).

1. Ratios are important tools to analyzing the financial performance of the health care organization. What are some of the ratios and what are they used for?

2. As noted earlier, the Present Value formula is PV = FV / (1+i)^n and the Future Value Formula is FV = PV * (1+i)^n. If your hospital needs $4,000,000 in 2022 for an ER expansion, which formula would work best? If the hospital can get a 6% interest rate, how much needs to be invested today?

3. How can a required rate of return that is too high or too low affect the decision making process in NPV or IRR valuations?

4. One ratio we might consider is the current ratio. The components you need to calculate the current ratio can be found on the balance sheet alone. What are the two line items you need to calculate the current ratio? What information can you determine about the company with the current ratio?

5. Our Week 2 Financial Exercises assignment (due this week) requires you to apply PV & FV calculations. Let's try a similar example. If you need $50,000 to pay off your student loans in 4 years, how much would you need to invest today with a 7% interest rate?

6. How do we calculate the NPV?

Reference no: EM131854699

Questions Cloud

Why does the observed pattern of FVs occur : Find the amount to which $200 will grow under each of these conditions. Why does the observed pattern of FVs occur?

Describe the impact of discrimination on individuals : 2- to 3-page paper. Describe the impact of discrimination on individuals of multiracial backgrounds.

Analyze the purpose of coca cola message : Analyze the purpose of Coca Cola's message "Taste the Feeling", (anticipate its audience, and select the best communication channel.)

State and explain the emerging issues in social studies : State and explain the emerging Issues in Social Studies since the introduction of social studies as a subject?

How do we calculate the npv : How can a required rate of return that is too high or too low affect the decision making process in NPV or IRR valuations?

What is the IRR or cost of the lease : Mountain Environmental Consulting may buy some field equipment for $40,000 or lease it for $2500 per month. What is the IRR or cost of the lease?

Discuss the assessment of a former employee : A colleague of yours who supervises a similar department in another local institution telephones you and asks for your assessment of a former employee.

What will be the monthly loan payment and loan EAR : You want to buy a car, and a local bank will lend you $20,000. What will be the monthly loan payment? What will be the loan's EAR?

What are the psychological needs of a child : What are the psychological needs of a child and how parents play that role towards the child

User Account

All Pages