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Two hospitals report their annual projected revenue

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Two hospitals report their annual projected revenue fo five years to the local newspaper for a story on the area's future economic outlook. however, hospital 1 has applied a cumulative inflation factor of five percent per year while hospital 2 has not applied any inflation factor. thus the information is not properly comparable.

Projected Revenue:

                      year 1            year 2                   year 3                  year 4                   year 5

hospital 1         $20,000,000    $22,000,000      $27,000,000       $27,500,000      $30,000,000

hospital 2       $20,000,000      $21,000,000      $25,000,000      $24,000,000       $26,000,000

Revise hospital 2's projection by applying a cumulative inflation factor of five percent per year.

Reference no: EM13265501

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