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How can net present value calculations help save resources

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Problem 1: Healthcare facility managers must understand the concept of net present value calculations because facility managers are involved with capital investment projects. Read Stewart & Martin on critical finance formulas for facility managers. How can net present value calculations help save resources? What are the strengths and weaknesses of this approach? For example, is replacement value based on replicating the present facility or on an entirely new design? If the latter, how is cost determined?

Reference no: EM132765341

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