1. The revenue cycle is composed of:

At-service activities

All of the above activities

Before service activities

After-service activities

Continuous activities

2. Assume that your organization's CFO has just completed a presentation to the board of trustees concerning the analysis of a proposed ambulatory surgery center costing $2 million. During the presentation, the CFO indicated that the project had an NPV of $786,339 and an IRR of 17.3 percent. Based on its risk, the project was judged to have a cost of capital of 13 percent. Which of the following statements is correct?

The project is financially unacceptable because its NPV is less than the project's initial investment cost.

The project is financially acceptable because its NPV is positive.

The project is financially acceptable because its IRR is greater than zero.

The project is financially unacceptable because its IRR is greater than its cost of capital.

The project is financially unacceptable, but it may have sufficient social value to make it worthwhile.

3. Other things held constant, an increase in the project cost of capital will cause a decrease in the project's internal rate of return (IRR). True False

4. As the discount rate applied to a single amount future value increases, the present value:

stays the same.

There is not enough information to answer this question.

decreases.

increases by some amount.

doubles.

5. What is the present value of a $100 lump sum to be received in 5 years if the opportunity cost rate is 10 percent? $ 90.91 $100.00 $ 62.09 $110.00 $161.05

6. Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return in the second year was +50 percent. Your investment is now worth $1,000. True False