HCA125 Sect1 Healthcare Finance Module 5 Assignment

Write a 1500-1750 word essay addressing each of the following points/questions. Be sure to completely answer all the questions for each bullet point. Separate each section in your paper with a clear heading that allows your professor to know which bullet you are addressing in that section of your paper. Support your ideas with at least three (3) sources in your essay. Make sure to reference the citations using the APA writing style for the essay. The cover page and reference page do not count toward the minimum word amount. Review the rubric criteria for this assignment.

Assignment Part 1: You are deciding between two investments in the healthcare field. Each investment is projected to produce the following cash flows:

Investment One

Year

Cash

0

-$150,000

1

$10,000

2

$8,000

3

$25,000

4

$50,000

5

$25,000

6

$50,000



Investment Two

Year

Cash

0

-$100,000

1

0

2

0

3

0

4

0

5

$54,000

6

$65,000



Assume a discount rate of 5%. Which investment would you prefer? Why?

Assignment Part 2: How would your analysis change if you assumed 3% inflation per year?

Assignment Part 3: If investment one was riskier than investment two, how would your calculations change so that additional risk is taken into account? Also, does this new information change your project preference?

Present your findings in the form of a spreadsheet, and include a three-page written report describing your findings, assumptions, and rationale. Make sure to reference any citations using the APA writing style for the essay. The cover page and reference page do not count towards the minimum word amount.

M5 Assignment UMBO – 2
M5 Assignment PLG – 1, 3
M5 Assignment CLO –2, 3, 4