Health Service Resource Management - Desklib

Running head: HEALTH SERVICE RESOURCE MANAGEMENT
Health Service Resource Management
Name of the Student:
Name of the University:
Author’s Note:

HEALTH SERVICE RESOURCE MANAGEMENT1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................4
References........................................................................................................................................7

HEALTH SERVICE RESOURCE MANAGEMENT2
Question 1
A) The net present value of the given scenario was analysed with the help of the given required
rate of return of 10% return. The net present value of the analysis was determined to be around
$5722.84 (Andor, Mohanty & Toth, 2015).
Net Present Value Analysis
Particulars
Year
0 1 2 3 4 5 6 7 8 9 10
Cash Outflow
-
25,00
0
Cash Inflow
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
Discount Factor @10% 1 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47 0.42 0.39
Discounted Cash Flow
-
25000
454
5
413
2
375
7
341
5
310
5
282
2
256
6
233
3
212
0
192
8
Net Present Value 5722.84
B) The cumulative cash flow in terms of nominal cash flow for the company did not undertake
the time value of money factor into account for the purpose of analysis. The nominal cash flow
was around $25,000 and in present value terms, the same was around $5722.84.
Cumulative Cash Flow Analysis
Particulars
Year
0 1 2 3 4 5 6 7 8 9 10
Cash Outflow
-
25,00
0
Cash Inflow
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
Discount Factor @10% 1 0.91 0.83 0.75 0.68 0.62 0.56 0.51 0.47 0.42 0.39
Discounted Cash Flow
-
2500
0
454
5
413
2
375
7
341
5
310
5
282
2
256
6
233
3
212
0
192
8
Net Present Value 5722.84
Nominal Cash Flow -
25,00
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0
5,00
0