Part 1:
Scenario: You have recently been hired as a manager in the financial department for a local hospital. In the last few weeks, you have noticed a lack of understanding from the staff on the hospital financial system. In order to connect the situation, you have decided to hold to staff meeting on the financial system and the essential documents that the staff is required to be familiar with.
Create a PowerPoint Presentation (With narration) to present at the staff meeting.
The required topics in the PowerPoint include:
Describe the information included on balance sheets and the importance of the information.
Include the ways to analyze financial statements
Explain the cost allocation methods that the hospital could use.
Include examples
Describe time value of money calculations and uses of these calculations.
Describe Opportunity Costs.
Explain the various ways to acquire and manage working capital.
Evaluate the options that the facility has to acquire short-term cash and then the options for short-term investments.
Part 2:
Solve the calculations involved in the time value of money. Please include your work and formulas you used in order to calculate the following problems:
Calculate the future value of $15,000 over three years if the interest rates are:
- 10 percent
- 15 percent
- 7 percent
Using the formula for future value of interest compounded more frequent than annually calculate the future value of a $10,000 investment at 8 percent interest if the interest is compounded:
Semi-annually over 20 years
Quarterly over 15 years
Monthly over 5 years
Calculate the approximate present value of $43,178 at 8 percent interest for 10 years, using the present value formula.
Calculate the interest rate of the given values: amount of perpetuity is $200,000 and the initial investment was $2,500,000
If a facility invested $5,000 cash, what would be the future value of the investment after 4 years:
- At 10% interest compounded annually
- At 10% interest compounded semiannually