(Must be proficient in Finance)
Assignment Introduction
Assignment Directions
Unit 7 Assignment: The Impact
of Financial and Strategic Planning
Unit Outcomes addressed in
this assignment:
Describe the key components
of a financial plan
Define financial and
strategic planning
Explain the difference
between a simple budget and a flexible budget
Describe the use of variance
analysis in the budget creation process
Course Outcome assessed in
this assignment:
HS440-4: Utilize financial
analysis to inform management decisions.
For this assignment, you are
considering the purchase of a new MRI machine for Bayside Memorial Hospital.
Think about what types of patients you will see, what types of care you will
provide, and the team members you have assembled. Remember, the financial
analysis provides much of the guidelines for all decision making in the
purchase decision. Your goal will be to provide a 2-minute elevator pitch of
your recommendation to the organization’s CEO and to persuade them toward your
point of view.
Using the chart of cash
revenues and costs, read and understand the cash flow analysis results. Then
provide your decision on whether to make the purchase or not. You will frame
this recommendation in a 2-minute pitch to your boss, the CEO of the
organization. Record your 2-minute pitch as an audio recording and be
persuasive, providing solid evidence for your conclusion on whether to purchase
the equipment or not.
Cash Revenues and Costs:
0
1
2
3
4
5
1.
System Cost
$2,000,000
2.
Installation
Expenses
$500,000
3.
Total Cost
$2,500,000
4.
Net Revenues
$750,000
$787,500
$826,875
$868,219
$911,630
5.
Labor Costs
(60,000)
(63,000)
(66,150)
(69,457)
(72,930)
6. Maintenance Cost
(150,000)
(157,000)
(165,375)
(173,644)
182,326)
7.
Supplies
(30,000)
(31,500)
(33,075)
(34,729)
(36,465)
8.
Net operating
income
$510,000
$535,500
$562,275
$590,389
$619,908
9.
Salvage Value
750,000
10. Net Cash Flow
($2,500,000)
$510,000
$535,500
$562,275
$590.389
$1,359,908
Profitability Measures:
Net present value: $82,493
Internal rate of return =
11.1%
Recording:
Options to record include
(but are not limited to) your computer (PC or Mac), Screencastify, which is a
free add-on to Chrome, Zoom, or using an app of your choice on a smartphone or
tablet.
Submit your recording link or
file to the Dropbox along with your APA formatted references you used to
support your oral presentation.
Reading for the week:
Kolder, A. (2012, February
6). Healthcare management engineering. Analytics. https://pubsonline.informs.org/do/10.1287/LYTX.2012.01.04/full/
UNIT 7 / MODULE 4
Gapenski, L. C. Healthcare Finance: An Introduction to
Accounting and Financial Management. (6th ed.). Health Administration Press.
Please read Chapter 7
Last Completed Projects
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