Reference no: EM133049503

Questions -

Q1-If $ 1,000 is the present value of $ 1,250 to be received at the end of 2 years, what is the 1-year discount factor (tas)?

Q2-What is the present value of an ordinary annuity of $ 2,000 per year at a discount rate of 5% for 10 years?

Q3-Columbus Clinic expects to receive $ 20,000 in 5 years from now. As part of another contract, the clinic must make a payment of $ 30,000 on a loan 6 years from now. The clinic wants to reserve an amount today that, combined with the money received, will cover its obligation of $ 30,000. Suppose the clinic's cost of capital is 7%. To the nearest hundred dollars, how much money does the clinic need to set aside today?

Q4-You will receive an inheritance of $ 100,000 in 20 years. Your investments earn 6% annually, compounded annually. To the nearest hundred dollars, what is the present value of your inheritance?

Q5-Columbus Clinic expects to receive $ 10,000 in 5 years from now. If the clinic's cost of capital is 12% per year, what is the value of the $ 10,000 3 years from now?

Q6-An equity investment decision has two components: Determining whether the investment is worthwhile, and determining how to finance the investment. Although these two decisions are interrelated, financial theory shows that these decisions must be separated. Do a brief review of these two components and their relevance to corporate value growth in the healthcare industry.

Q7-There are two main categories of funding sources: equity (capital) and debt (liabilities). What has historically been the capital structure of the hospital industry, that is, what has been the approximate financing percentage between equity and debt in the sector?

Q8-State, explain and give a simple example of the different financial criteria for capital budget evaluation (NPV, IRR, Payback period, C / B analysis). Say which is the most used to analyze and select alternative or substitute projects.