Capital Budgeting
Capital Budgetin" rel="nofollow">ing
Order Description
Week 10 Assignment: Capital Budgetin" rel="nofollow">ing
Note: The Instructor will post the document for this Assignment by Day 1 of Week 10.
There are many options to buy capital, in" rel="nofollow">includin" rel="nofollow">ing cash purchases, loans, leasin" rel="nofollow">ing, and other forms of payment. Your goal as a health care manager is to determin" rel="nofollow">ine which
method is best for your organization, given its fin" rel="nofollow">inancial and organizational structure (i.e., for-profit or not-for-profit). Time value of money and net present value
are two techniques that may help you determin" rel="nofollow">ine how and when to in" rel="nofollow">invest in" rel="nofollow">in new capital. For this Assignment, you examin" rel="nofollow">ine these concepts as they pertain" rel="nofollow">in to the health
care in" rel="nofollow">industry.
To prepare for this Assignment:
Review the Week 10 Assignment document provided to you by the Instructor. Reflect on concepts of time value of money, net present value, in" rel="nofollow">internal rate of return, and
purchasin" rel="nofollow">ing options.
The Assignment:
Usin" rel="nofollow">ing the “Week 10 Assignment Capital Budget Excel Template” answer the questions provided in" rel="nofollow">in the week 10 assignment document.
NOTE: READ AND IGNORE QUESTION #5 AND DO THE PAYBACK PERIOD FOR QUESTION #3
For problem 5 n the Week 10 Assignment, ignore the question on the assignment sheet and do the payback period for the equipment in" rel="nofollow">in Question 3 as is in" rel="nofollow">in the excel
document!