1. The result of a CMI times the number of cases results in _________ .
a. Gross patient revenue
b. Net patient revenue
c. Net income
d. None of the above.
2. The US Government has a 3minus−year ?5% coupon bond with a face value of? $1,000. The bond pays annual coupons and the first coupon is due in one year. Using the data on zero coupon US Government bond yields in the? table, below, what is the price of the coupon? bond?
Term Yield
t? = 1 ?8.11%
t? = 2 5.41%
t? = 3 ?4.55%
3. ABC company purchased equipment for a project for $3.15 million. If the net cash flow is estimated at $500,000 per year and a salvage value of $400000 is anticipated, determine how many years the equipment must be used to just break even at annual interest rates of:
A) 8%
b) 12%
c) 15%