Assignment DetailsYou have been hired in the finance department at a large, metropolitan, for-profit...

Question

Assignment DetailsYou have been hired in the finance department at a large, metropolitan, for-profit hospital. Your duties are very important to the entire hospital in terms of financing operating costs. Additionally, you are also in charge of 3 employees who work under you to help with the day-to-day accounting activities. Your role includes budgeting, managing the general ledger accounts, utilizing financial formulas to perform accounting activities, and training and development of your 3 employees. This professional career is exciting and challenging for you but is also enjoyable and rewarding as you work your way up the career ladder toward reaching your goal of becoming the Chief Executive Officer (CEO) of the hospital.Due to scarce resources, your organization is faced with the decision of choosing between mutually exclusive projects (i.e., build a rehab center or build a neonatal wing). You have been asked to develop a financial analysis of the two projects based on Net Present Value (NPV), Return on Investment (ROI), and Profitability Index (PI). Briefly explain the following concepts and their use/value in assessing the validity of the two mutually exclusive projects:NPVROIPIPayer (or case) mixSubmitting your assignment in APA format means, at a minimum, you will need the following:Title page:Remember the running head and title in all capital letters.Abstract:This is a summary of your paper, not an introduction. Begin writing in third-person voice.Body:The body of your paper begins on the page following the title page and abstract page, and it must be double-spaced between paragraphs. The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics except as required for APA level headings and references. The deliverable length of the body of your paper for this assignment is 3–5 pages. In-text academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.Reference page:References that align with your in-text academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hang indention, italics, and upper- and lower-case usage as appropriate for the type of resource used. Remember, the reference page is not a bibliography, but it is a further listing of the abbreviated in-text citations used in the paper. Every referenced item must have a corresponding in-text citation.Please submit your assignment.

Rimsha · Accepted Answer

Running Head: HEALTHCARE		1
HEALTHCARE		2
HEALTHCARE
USE OF FINANCIAL ANALYSIS TOOL TO ASSESS THE VALIDITY OF THE PROJECT
Table of Contents
Abstract	3
Net Present Value	4
Return on Investment	4
Profitability Index	5
Payer (or case) Mix	5
References	7
Abstract
	The following assignment provide the details of the financial analyzing tool such as net present value, return on investment, profitable index and payer mix. It provides their importance and uses to identify where future investment can be done to get the profitable outcomes. It provides the formulas of all the tools, which can be helpful in calculation.
Net Present Value
	Net present value or NPV is known as the difference between present values that cash inflows and outflows hold over the period. As suggested by Leyman and Vanhoucke (2016), NPV is implied in capital budgeting as well as in investment planning for identifying which project can provide high profit or return on investment. NPV is calculated when the current money is higher in comparison to the money in future due to inflation and alternative investment and sources are required to earn money. It is important to note that investment is need to be done crucially done during this intervening time. 
For example, as per the case study, the hospital setting is not financially strong to carry forward both exclusive projects. They must decide between developing the rehab center or a neonatal wing. The discount rate in the Net present value formula allow to understand the net return, which can be earn from the alternative source and the time it takes in return. As noted by Stretcher (2015), a positive NPV shows that the predictable incomes produced by the project is above the anticipated costs in present value. On contrary, the negative net present value resulted in a net loss. 
Return on Investment
	Return on investment or ROI is the performance measure, which is implied to increase the effectiveness of the investment done. As mentioned by Masters, Anwar, Collins, Cookson and Capewell (2017),

Assignment Details You have been hired in the finance department at a large, metropolitan, for-profit hospital. Your duties are very important to the entire hospital in terms of financing operating...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment