There are many options to buy capital, including cash purchases, loans, leasing, and other forms of payment. Your goal as a health care manager is to determine which method is best for your organization, given its financial 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 determine how and when to invest in new capital. For this Assignment, you examine these concepts as they pertain to the health care 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, internal rate of return, and purchasing options.
The Assignment:
Using the “Week 10 Assignment Capital Budget Excel Template” answer the questions provided in the week 10 assignment document.
To assist you with this task a Present and Future Values Excel Tutorial has been created (please check your volume settings)
Expert Solution Preview
Introduction:
In the healthcare industry, it is essential to make informed decisions when it comes to investing in new capital. The goal of this Assignment is to analyze different methods of buying capital and determine which one is best for the organization, considering its financial and organizational structure. This requires an understanding of concepts such as time value of money, net present value, internal rate of return, and purchasing options.
Answer:
The Week 10 Assignment Capital Budget Excel Template provided by the Instructor can be used to answer questions about buying capital in the healthcare industry. This template allows for the calculation of net present value, internal rate of return, and other relevant financial metrics. Additionally, the Present and Future Values Excel Tutorial provided can help students better understand these concepts and how to apply them in the healthcare industry. By utilizing these tools, students can make informed decisions about how and when to invest in new capital in the healthcare industry.
