Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
a.Perform a sensitivity analysis to see how NPV is affected by changes in the number of procedures per day, average collection amount, and salvage value.
b.Conduct a scenario analysis. Suppose that the hospital's staff concluded that the three most uncertain variables were number of procedures per day, average collection amount, and the equipment's salvage value. Furthermore, the following data were developed:
Scenario
Probability
Number of Procedures
Average Collection
Equipment Salvage Value
Worst
0.25
10
$60
$100,000
Most likely
0.50
15
80
200,000
Best
20
100
300,000
c. Finally, assume that California Health Center's average project has a coefficient of variation of NPV in the range of 1.0-2.0. (Hint: The coefficient of variation is defined as the standard deviation of NPV divided by the expected NPV.) The hospital adjusts for risk by adding or subtracting 3 percentage points to its 10 percent corporate cost of capital. After adjusting a differential risk, is the project still profitable?
d. What type of risk was measured and accounted for in parts b and c? Should this be of concern to the hospitals managers?
Sheffield Co. shows the following information on its 2010 income statement: sales = $153,000; costs = $81,900; other expenses = $5,200; depreciation expense = $10,900; interest expense = $8,400.
You are analyzing a company that has cash of $11,200, accounts receivable of $27,800, fixed assets of $124,600, accounts payable of $31,300, and inventory of $56,900. What is the quick ratio.
Corporation A is equity financed with 10000 shares of equity outstanding selling for $100 a share. It is restructuring. Low debt plan is to issue debt of $200,000 with proceeds to buy the stock.
Cafe de Oro earns $4.25 per share and has a dividend payout ratio of 0.40. If Cafe de Oro has a capital budget of $200,000 and 70,000 shares outstanding, what are the annual dividends per share?
Suppose the firm has no excess cash. Assume the spot rate of the pound is $2.02, the 180-day forward rate is $2.00. The British interest rate is 5 percent,
business culture is the context in which the measures exist. they are bound to each other in terms of context and
Pizza A had earnings after taxes of $600,000 in the year 2008, and 300,000 shares outstanding. In year 2009, earnings after taxes increased to $750,000, and 25,000 new shares were issued for a total of 325,000 shares. What is the EPS figure for 20..
Midyear on July 31st, the Baldwin Corporation's balance sheet reported: Total Liabilities of $128.165 million Total Common Stock of $6.350 million Cash of $10.050 million Retained Earnings of $45.041 million. What were the Baldwin Corporation's to..
Use the information given below and consider portfolio weights of .60 in stocks and .40 in bonds. Determine the rate of return on the portfolio in each scenario?
Analysis of two Medicare initiatives.
How many choppers would you have to sell to break even, if you required a 15% return? (Hint: Use the 15% as the discount rate and calculate net present value.
The Republic of Republic produces two goods/services, fish (F) and chips (C). In 2006, the 2000 units of F produced sold for $5 per unit and the 5000 units of C produced sold for $2 per unit.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd