1) You are a nursing supervisor responsible for all-purpose medical/surgical units consisting of 50 beds. For first time the chief financial officer has asked you to make a budget for your area of responsibility. Explain the process you will utilize to achieve this task, including information you will require, and significant steps in the process.
2) Marshall Manufacturing has now borrowed money at 13.5% for 2 years. Pure rate of interest is= 2%. Marshall's default risk premium is= 4%, its liquidity risk premium is= 2%, and its maturity risk premium is= .5%. Inflation is expected to be= 3% during first year of loan's life. What does lender expect inflation rate to be in the loan's second year?