Expected cost of sell the nursing home, Operation Management

Assignment Help:

Beverly Enterprises owns a nursing home that is currently earning $2.0 million in cash flow on an annual basis, but this amount is expected to drop in the future. The nursing home has a book value of $20 million, a replacement cost of $40 million, and a current sale value of $10 million. If Beverly Enterprises has a cost of capital equal to 15 percent, at what value of annual cash flow would Beverly Enterprises be likely to sell the nursing home?

A. $1,600,000

B. $1,500,000

C. $1,550,000

D. None of the above


Related Discussions:- Expected cost of sell the nursing home

Explain what changes in culture are needed at the plaza inn, 1. How could t...

1. How could the Plaza Inn develop a collaborative strategy? Develop a specific plan. 2. How could technology help solve the problems at the front desk? Explain what you propose

How motivate the successful salesperson, 1. The chapter mentions the theory...

1. The chapter mentions the theory of transaction cost analysis (TCA). What role does TCA play in the decision to use a company sales force rather than independent manufacturers' a

Design of work systems, A worker machine operation was found to involve 3.5...

A worker machine operation was found to involve 3.5 minutes of machine time per cycle in the course of 40 cycles of stopwatch study. The workers time averaged 2.3 minutes per cycle

Explain theories in management response, Theories in Management Response co...

Theories in Management Response consider the various management theories of the past 100 years. What are the benefits of understanding these theories and their evolution? How are t

Rules related to the arrangement of the work place, Related to the arrangem...

Related to the arrangement of the work place: 1.       There  should  be a definite and fixed place  for all tool sand material. 2.        Tools  materials and controls sho

Describe the general environmental challenges, 1. Describe and discuss an o...

1. Describe and discuss an organization's task environment. Discuss how the elements within the task environment would impact an organization such as Microsoft Corporation. 2. Disc

Explain the most appropriate form of ownership, Go to this website www.worl...

Go to this website www.worldfranchising.com . Select any of the hottest new franchises that interest you.. View the site and identify the information about the financial requiremen

Factors for selection of processes, Factors for Selection of Processes ...

Factors for Selection of Processes The following factors should be considered for selection of processes: Quantity to be produced: Some processes are very expen

Explain what do your contingency plan, What do your contingency plan in cas...

What do your contingency plan in case your plan of action doesn't work?

Deliberate end users of health data, Identify and deliberate 5 end users of...

Identify and deliberate 5 end users of health data. Be sure to discuss what type of data they might be interested in knowing.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd