question 1:
Your Firm has an established debt policy of 60 percent for all capital expenditures. What targeted value for the replacement viability ratio must be set?
question 2: Your hospital has billed charges of $4,000,000 in February. If your
Collection experience indicates that 20 percent is paid in the month billed, 40 percent
in the second month, 20 percent in the third month, and 5 percent in the fourth month,
determine the following value:
(a)Net patient revenue for February
(b) Collections of February charges in February
(c) Net accounts receivable at the end of March for February billings
question3:
Omega Health Foundation is considering buying personal computers to install in each patient’s
room. The cost of the investment will be $1,400,000. It is expected that the technology will reduce nursing cost by $200,000 per year for the next seven years. If your discount rate is 10 percent, what is the profitability index of the investment?
Your Firm has an established debt policy of 60 percent for all capital expenditures. What targeted value for the replacement viability ratio must be set?
question 2: Your hospital has billed charges of $4,000,000 in February. If your
Collection experience indicates that 20 percent is paid in the month billed, 40 percent
in the second month, 20 percent in the third month, and 5 percent in the fourth month,
determine the following value:
(a)Net patient revenue for February
(b) Collections of February charges in February
(c) Net accounts receivable at the end of March for February billings
question3:
Omega Health Foundation is considering buying personal computers to install in each patient’s
room. The cost of the investment will be $1,400,000. It is expected that the technology will reduce nursing cost by $200,000 per year for the next seven years. If your discount rate is 10 percent, what is the profitability index of the investment?