Question 1. A hospital has been consistently performing below its peer group as far as total margin. What are some of the reasons behind that and what corrective action can management take to ensure performance within industry norms?
Question 2. Two investment projects which are mutually exclusive both require a 10,000,000 investment. Projected cash flows are:
Year Project A Project B
1 3,500,000 6,500,000
2 3,500,000 3,000,000
3 3,500,000 3,000,000
4 3,500,000 1,000,000
Question 3. If your discount rate is 12 percent, calculate payback, net present value for each project.