Strayer University Wk 8 Benson Regional Medical Center Project Analysis Presentation

User Generated

Ebq101

Health Medical

Strayer University

Description

You're a member of the financial services department at Benson Regional Medical Center. The chief financial officer and chair of the capital budgeting committee, Dana Foster, has requested that you perform some capital analysis of two proposed patient service programs.

  1. Start by downloading the Week 8 Discussion Spreadsheet [XLSX].
  2. Use the spreadsheet to find the information needed to complete a net present value (NPV), internal rate of return (IRR), and a discounted payback period for proposed programs A and B.
  3. Once you have completed the capital budgeting analyses, prepare a narrated PowerPoint presentation that provides: 
    • A brief description of proposed programs A and B.
    • The cash flows projections for each option from Year 0 through Year 5.
    • The results and interpretation of the discounted payback period.
    • Net present value (NPV).
    • Internal rate of return (IRR).
    • Your program recommendation along with supporting rationale to the full capital budgeting committee for their consideration.
  4. The presentation should be limited to 10 minutes. 

For this discussion:

  • Post the spreadsheet and slide deck.
  • Remember to respond to at least one of your classmates' posts.

Required Resources

The Payback Period in Microsoft Excel video walks you through computing a payback period in Microsoft Excel for a proposed capital investment.

The Solution 6: Choose a Project Based on NPV, IRR, and Payback Period video walks you through choosing a project based on NPV, IRR, and payback period.

Unformatted Attachment Preview

Benson Regional Medical Center: Capital Budgeting Discount Rate = 10% WACC = 10% Program A Years Cash Flows 0 -$228.500,00 1 $16.715,00 2 $83.070,24 3 $172.620,29 4 $137.957,29 5 $92.975,49 Program B Years 0 1 2 3 4 5 Discounted Payback Period 0 1 2 3 4 5 Cash Flows -$228.500,00 $16.715,00 $83.070,24 $172.620,29 $137.957,29 $92.975,49 Net Present Value = Internal Rate of Return = Discounted Payback (YY/MM) = Cash Flows Cumulative discounted to Discounted CFs today's $$ (PV) $0,00 $0,00 $0,00 $0,00 $0,00 $0,00 Years Project B Project A Years Discounte 0 1 2 3 4 5 Net Present Value = Internal Rate of Return = Discounted Payback (YY/MM) = ng Program B Cash Flows -$419.500,00 $45.430,00 $153.351,75 $294.861,83 $282.824,17 $220.932,28 Discounted Payback Period Cash Flows -$419.500,00 $45.430,00 $153.351,75 $294.861,83 $282.824,17 $220.932,28 Present Value = nal Rate of Return = ounted Payback (YY/MM) = Cash Flows discounted to today's $$ (PV) Cumulative Discounted CFs $0,00 $0,00 $0,00 $0,00 $0,00 $0,00
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Explanation & Answer

View attached explanation and answer. Let me know if you have any questions.

Project Analysis
Student Name
Institution Affiliation
Date

Description of Programs A and B
• Benson Regional Medical Center requested an analysis of the two patient
service programs.
• Programs A and B are to go through five years with cash flows from year 0
to five.
• Analysis involves discounted payback period, Net Present Value and
Internal rate of Return.
• The WACC and Discounted Rate for the two projects was 10% each.

Cash flows Projection for Projects A and B

Results and Interpretation of Discounted Payback Period
• For Project A, Payback Period = 2 years 8.9478 months
• For Project B, Payback period = 2 years 8.9825 months
• Pay...

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