1. Project A and Project B are independent projects. Project A has a NPV of $1,250 and an IRR of 17.5% while Project B has a NPV of $1,255 and an IRR of 39.1%. Given this information, the appropriate capital budgeting decision is to reject Project A and choose Project B. True False
2. Identify each responsibility center in the list below as either a service center, cost center (clinical or administrative), profit center (capitated or administrative), or investment center.
a. Radiology department that must control its own costs.
b. Admitting department of a hospital.
c. HMO.
d. Stand-alone outpatient clinic that must earn a 10 percent ROI.
e. Volunteer department with no budget.
f. Development office.