How much would the investment be worth

Assignment Help Finance Basics
Reference no: EM132041461

Question: Please answer the following problems:

1. Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $800,000 per year, and the program is expected to last 5 years. Assuming payments are made at the end of each year and the interest is 7% per year, what should be the size of the initial endowment?

2. In 2010, James County Hospital's total patient revenues were $30 million. In 2019, patient revenues are expected to be $60 million. What is the compound growth rate in patient revenues over this time period?

3. In 2011, King county hospital's total patient revenues were $15 million. In 2020, patient revenues are expected to be $38.37 million. What is the compound growth rate in patient revenues over this time period?

4. Upland Family practice center plans to invest $60,000 in a money market account at the beginning of each year for the next 5 years. The investment pays 3% annual interest. How much would this investment be worth after 5 years of investing?

Reference no: EM132041461

Questions Cloud

Requires an initial fixed asset investment : Summer Tyme, Inc., is considering a new 4-year expansion project that requires an initial fixed asset investment of $3.672 million.
What wacc should use for liquor division : Coffeestop primarily sells coffee. it recently introduced a premium coffee-flavored liquor (BF Liquors). suppose the firm faces a tax rate of 40%.
Role of bi in planning in a small organozation : What is the role of BI in planning in a small organozation?
Assumptions of the simple CAPM model : Which of the following are assumptions of the simple CAPM model?
How much would the investment be worth : Downtown Medical Center is starting an endowment fund to pay for the expenses of a community outreach pediatric program. The expenses are $800,000 per year.
Did the irish play a role in the american revolution : Did the Irish play a role in the American Revolution? What role did African Americans play in the American revolution?
What sports were played during the american revolution : What were the roles of women before during and after the American Revolution? What sports were played during the American revolution?
Estimate the expected return on dell stock : You estimate the expected return on Dell's stock at 16%. If the market is efficient, what will happen to the price of Dell? Explain.
Evaluating the fiscal strength of health care organizations : Discuss the financial and nonfinancial measures that are important in evaluating the fiscal strength of health care organizations.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the risk free rate return

Corporation stock has beta coefficient equal to 1.8 and are quirked rate return equal to 16 percent if the expected return on the market is 10 percent what is the risk free rate return?

  Explain how the spot and forward rates of the pound

Assume the following information: • British pound spot rate = $1.71 • British pound one-year forward rate = $1.69 • British one-year interest rate = 8% • U.S. one-year interest rate = 5% a. Explain how U.S. investors could use covered interest arbitr..

  Write the complete history of wipro technologies

Write the complete history of wipro technologies in your own words

  What must your required return be on the stock

The most recent dividend was $2.3 and dividends are expected to grow at a rate of 4% indefinitely. What must your required return be on the stock?

  Describe one thing you learned about financial markets

Describe one thing you learned about financial markets and institutions that you found surprising or interesting.

  Calculate the variance and the standard deviation

A portfolio is made up of 75 percent of stock 1, and 25 percent of stock 2. Stock 1 has a variance of .08, and stock two has a variance of .035. The covariance between the stocks is -.001.

  A couple borrows 200000 for a mortgage that requires fixed

a couple borrows 200000 for a mortgage that requires fixed monthly payments over 30 consecutive years. the first

  Comment on the ethical implications of management’s behavior

"To the professors' surprise, the financial officers were eager to talk about how companies would forgo projects that would give them economic gain in order to put a finer gloss on earnings." Comment on the ethical implications of management's beh..

  Measure the benefits and costs of implementing schedule

Benefit-cost analysis experts agree that to the extent you can quantify benefits and costs, you should do this. However, some people complain.

  How are present value and future value calculations related

How are present value and future value calculations related?

  Statements about directors of a company

1. Which of the following statements about directors of a company is true?

  Reduction of business costs

Improving a firm's sales and profit - Improving a company's customer services and Implementing flexible scheduling - Reduction of business costs

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