THE HEALTHCARE MANAGEMENT

Running head: HEALTHCARE MANAGEMENT
Healthcare Management
Name of the Student:
Name of the University:
Author’s Note:

HEALTHCARE MANAGEMENT1
Table of Contents
Question 1........................................................................................................................................2
Question 3........................................................................................................................................3
Question 4........................................................................................................................................4
Question 5........................................................................................................................................5

HEALTHCARE MANAGEMENT2
Question 1
Project Investment Analysis
Particulars Year 0 1 2 3 4
Equipment Cost 450,000$
ShippingCost 100,000$
Initial Investment 550,000$
Scrap Value 50,000$
Cash Inflows
Price Per Case 100$ 100$ 100$ 100$
Number of Cases 6,000$ 6,000$ 6,000$ 6,000$
Revenue 600,000$ 600,000$ 600,000$ 600,000$
Less: Supplies 50$ 50$ 50$ 50$
Number of Cases 6,000$ 6,000$ 6,000$ 6,000$
Total COGS 300,000$ 300,000$ 300,000$ 300,000$
Labor Cost 150,000$ 150,000$ 150,000$ 150,000$
Depreciation 125,000$ 125,000$ 125,000$ 125,000$
Total Costs 575,000$ 575,000$ 575,000$ 575,000$
Cash Flow Before Tax 25,000$ 25,000$ 25,000$ 75,000$
Taxation@30% 7,500$ 7,500$ 7,500$ 22,500$
Cash Flow After Tax -550,000$ 17,500$ 17,500$ 17,500$ 52,500$
Add: Depreciation 125,000$ 125,000$ 125,000$ 125,000$
Free Cash Flows -550,000$ 142,500$ 142,500$ 142,500$ 177,500$
Discount Rate @ 25% 1 0.8 0.64 0.51 0.41
Discounted Cash Flows -550,000$ 114,000$ 91,200$ 72,960$ 72,704$
Net Present Value -199,136$
Question1(Investment Analysis)