Financial Management In Healthcare
Financial Management In Healthcare
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FINANCIAL MANAGEMENT (HCM-213)
ASSIGNMENT 2
Total of 10 Marks
Last Date for Submission 04/04/2018
Q1: Al Amal Hospital is expecting its new center to generate the following cash flows:
Years | 0 | 1 | 2 | 3 | 4 | 5 |
Initial investment |
($30,000,000) | |||||
Net operating cash flows | $6,000,000 | $8,000,000 | $16,000,000 | $20,000,000 | $30,000,000 |
- Determine the payback for this new center.
- Determine the net present value using a cost of capital of 15 percent. Should the project be accepted?
Q2. Assume a zero coupon Bond with a $1000 Par Value and 15-year maturity, calculate its rate of return if the market price equal $315.240.
Q3. A tax exempt bond was issued at a 10% coupon bond and a maturity of 15 years. The Par Value of the bond is $1000.
At what required market rate (10%, 5% or 14%) does the above bond sell at a discount? At a premium?