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You are 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 adds 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 selecting between mutually exclusive projects (I.e., Build a Rehab. Center or Build a Neonatal Wing). You have been asked to prepare a financial analysis of two projects and based on Net Present Value (NPV), Return on Investment (ROI), and Profitability Index (PI), Briefly Illustrate the following concepts and their use/value in assessing the validity of the two mutually exclusive projects:

1. NPV
2. ROI
3. PI
4. payer (aka case) mix

Referencing style: APA format

Financial Management, Finance

  • Category:- Financial Management
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