Assignment: Financial Analysis
You have been 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 includes 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 choosing between mutually exclusive projects (i.e., build a rehab center or build a neonatal wing). You have been asked to develop a financial analysis of the two projects based on Net Present Value (NPV), Return on Investment (ROI), and Profitability Index (PI). Briefly explain the following concepts and their use/value in assessing the validity of the two mutually exclusive projects:
• NPV
• ROI
• PI
• Payer (or case) mix.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.