1. What is the difference between the embedded and marginal cost of funds in healthcare? Which is most important in financial decision making? Why
2. May a firm have more than one cost of capital? When would you use more than one cost of capital in financial decision making? Give an example.
3. Chaüs calls you for help: it wants to calculate how long it will take for their current investment in treasury securities of $2000 to be worth $3250, at which point they will be able to purchase a cappuccino machine. Assume that the annual risk free rate is 6%.