Provide 75-word count response to the discussions below and provide a reference for each
Can refer to the course text as well:
Zelman, W. N., McCue, M. J., & Glick, Thomas, N. D. M. S. (2014). Financial Management of Health Care Organizations (4th ed.).
1. Ratios are important tools to analyzing the financial performance of the health care organization. What are some of the ratios and what are they used for?
2. As noted earlier, the Present Value formula is PV = FV / (1+i)^n and the Future Value Formula is FV = PV * (1+i)^n. If your hospital needs $4,000,000 in 2022 for an ER expansion, which formula would work best? If the hospital can get a 6% interest rate, how much needs to be invested today?
3. How can a required rate of return that is too high or too low affect the decision making process in NPV or IRR valuations?
4. One ratio we might consider is the current ratio. The components you need to calculate the current ratio can be found on the balance sheet alone. What are the two line items you need to calculate the current ratio? What information can you determine about the company with the current ratio?
5. Our Week 2 Financial Exercises assignment (due this week) requires you to apply PV & FV calculations. Let's try a similar example. If you need $50,000 to pay off your student loans in 4 years, how much would you need to invest today with a 7% interest rate?
6. How do we calculate the NPV?