How much will need in foundation grants

Assignment Help Financial Management

Reference no: EM131150068

We are investigating the purchase of a new mobile primary care van to use in screening residents in an under-served Central Florida areas. The van will last for 5 years and costs $68,000. We 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 us $15 for each patient it screens using the new van. We expect to serve 800 patients per year with the van. It will cost $3,000 per year to maintain the vehicle, and includes all relevant costs. We use a discount rate of 5 percent.

•How much will we 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 over 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: EM131150068

Questions Cloud

What is the equivalent annual savings from the purchase : What is the equivalent annual savings from the purchase if Gluon uses straight-line depreciation?- The opportunity cost of capital is 11%, and the firm's tax rate is 40%.

What role did government play in these developments : What were the most revolutionary social and economic developments of the last quarter of the nineteenth century? What role did government play in these developments?

Is the manometer reading proportional to head loss : Is the manometer reading proportional to head loss? Explain. (d) What is the friction factor of the flow?

Describe the ethical issues related to cultural competence : Examine the influence of your own personal values as related to the diversity issues presented in this case. Reflect on how you felt as you read the case study, how your values came into play, and how you would handle your values in a situation su..

How much will need in foundation grants : How much will we need in foundation grants this year to make the purchase break-even financially?- Are the payments from the county sufficient? If not, how much must be raised in grants before the van is purchased?

Can you also estimate the density of the fluid : Estimate the viscosity of the fluid. Is the flow laminar? Can you also estimate the density of the fluid?

Design a strategy for the financing of project : Assume that UPC was successful in generating $15 million from its bond issue. - Design a strategy for the financing of project .

Can the human lung deliver this much flow : A soda straw is 20 cm long and 2 mm in diameter. It delivers cold cola, approximated as water at 10°C, at a rate of 3 cm3 /s.

Describe the basic argument of opposing viewpoints : Describe the basic issue of your chosen topic. Describe the basic argument of opposing viewpoints. Identify the strengths and weaknesses of both views. Choose which view you agree with. Explain why you agree with that view.

User Account

All Pages