Reference no: EM131032924
Healthcare Finance
Instructions
You will be submitting a recommendation on whether or not a new MRI machine is feasible. You will include both a detailed report that highlights some of the keys benefits and a cash flow analysis for the MRI machine. Part II of this assignment requires that you create a detailed recommendation, using the cash flow you created as a reference, of whether or not the facility should or should not buy a MRI. To present your analysis, the physician's network has asked you to prepare a report. This report will be in two parts. The first section will be a written report (in essay format) that includes an introduction of what will be included in the report, a detailed summary of the cash flow analysis, and a determination by you as to whether you recommend that the new MRI services to be a sound financial decision. For the report to be effective, it should be no less than five pages total, including references.
Keep in mind, a majority of this information comes from directly from your cash flow analysis as you just need to summarize it. What are the significant figures? What year will the facility break even? What year will the facility make a profit? How did you get these numbers? Finally, in your final paragraph you will state your recommendation, based on this analysis. Remember, your cash flow analysis is your reference for this recommendation.
|
|
|
Cash Revenue and Costs
|
|
|
|
|
0
|
1
|
2
|
3
|
4
|
5
|
|
1. System Cost
|
($2,000,000)
|
|
|
|
|
|
|
2. Installation Expenses
|
($500,000)
|
|
|
|
|
|
|
3. Total Cost
|
($2,500,000)
|
|
|
|
|
|
|
4. Net Revenues
|
|
$1,012,500
|
$1,012,500
|
$1,012,500
|
$1,012,500
|
$1,012,500
|
|
5. Labor Costs
|
|
($140,000)
|
($140,000)
|
($140,000)
|
($140,000)
|
($140,000)
|
|
6. Maintenance Cost
|
|
($125,000)
|
($125,000)
|
($125,000)
|
($125,000)
|
($125,000)
|
|
7. Supplies
|
|
($54,000)
|
($54,000)
|
($54,000)
|
($54,000)
|
($54,000)
|
|
8. Net Operating Income
|
|
$693,500
|
$693,500
|
$693,500
|
$693,500
|
$693,500
|
|
9. Salvage Value
|
|
|
|
|
|
$750,000
|
|
10. Net Cash Flow
|
($2,500,000)
|
$693,500
|
$693,500
|
$693,500
|
$693,500
|
$1,443,500
|
Assignment Requirements
Report Includes Introduction
Report includes detailed summary of the cash flow analysis
Report includes a decision summary (recommendation or declination) based off of the cash flow analysis
Report includes a conclusion paragraph summarizing the written portion
Suggested Outline
Paragraph 1-2: Introduce the report. What are you going to be covering? Who is the report addressed to?
Paragraph 3-4: A detailed summary of cash flow analysis. What figures stood out to you? What figures do they need to aware of? You need to inform the reader what the numbers on your analysis mean.
Paragraph 5-6: Your recommendation. Please do not simply say "Yes, this is a great investment." Explain why. What is the profit margin and when will the company first see a profit?
Consider using the following resources to help you get started:
https://www.investopedia.com/articles/stocks/07/easycashflow.asp - This article describes how to analyze a cash flow analysis
https://www.sba.gov/content/develop-cash-flow-analysis-your-business This article discusses developing a cash flow analysis
https://www.expectationsinvesting.com/tutorial8.shtml - This article discusses the Cost of Capital.
|
Determine the convergence or divergence of the series
: Use the comparison test to determine the convergence or divergence of the series
|
|
Evaluate the success of vodafone implementation plan
: Analyze and discuss the central issue(s) faced by Vodafone, including the contributing management and technological factors, explain why ERP was a necessary information system solution to address the organization's issues;
|
|
Why is the fluid in the absorber cooled
: In absorption refrigeration cycles, why is the fluid in the absorber cooled and the fluid in the generator heated?
|
|
Explain benefit of risk assessment for an it infrastructure
: Explain the benefit of risk assessment for an IT infrastructure. How does an IT manager faced with a list of several risks know which risks to focus on first?
|
|
When will the company first see a profit
: Your recommendation. Please do not simply say "Yes, this is a great investment." Explain why. What is the profit margin and when will the company first see a profit?
|
|
What is the maximum thermal efficiency
: What is the maximum thermal efficiency this thermoelectric generator can have?
|
|
Determine the fraction of the refrigerant that evaporates
: the amount of heat removed from the refrigerated space and the compressor work per unit mass of refrigerant flowing through the condenser
|
|
Refer to the real world case on wolf peak international
: Refer to the Real World Case on Wolf Peak International in the chapter. If you were starting a small business, what business application software would you choose for accounting and control of business operations and management reporting? Why?
|
|
Identify an organizational-level goal
: Identify an organizational-level goal that would be incorporated into an annual business strategy (e.g., financial performance, service, productivity, competitive advantage, innovation.). Develop three organizational development strategies relating t..
|