Question
a member of the financial services department at Benson Regional Medical Center. The chief financial officer and chair of the capital budgeting committee, Dana Foster,
a member of the financial services department at Benson Regional Medical Center. The chief financial officer and chair of the capital budgeting committee, Dana Foster, has requested that some capital analysis of two proposed patient service programs needs to be perform.Use the spreadsheet below to find the information needed to get a net present value (NPV), internal rate of return (IRR), and a discounted payback period for proposed Programs A and B.
2.Once you have completed the capital budgeting analyses
1.A brief description of the proposed programs (A & B)*.
2.The cash flows projections for each option from Year 0 through Year 5.
3.The results and interpretation of the discounted payback period.
4.Net present value (NPV).
5.Internal rate of return (IRR).
below is the spread sheet
Benson Regional Medical Center: Capital Budgeting Discount Rate = 10% WACC = 10% Program A Program B Years Cash Flows Years Cash Flows 0 -$228,500.00 0 -$419,500.00 1 $16,715.00 1 $45,430.00 2 $83,070.24 2 $153,351.75 3 $172,620.29 3 $294,861.83 4 $137,957.29 4 $282,824.17 5 $92,975.49 5 $220,932.28 Project A Discounted Payback Period Project B Discounted Payback Period Years Cash Flows Cash Flows discounted to today's $$ (PV) Cumulative Discounted CFs Years Cash Flows Cash Flows discounted to today's $$ (PV) Cumulative Discounted CFs 0 -$228,500.00 0 -$419,500.00 1 $16,715.00 $0.00 1 $45,430.00 $0.00 2 $83,070.24 $0.00 2 $153,351.75 $0.00 3 $172,620.29 $0.00 3 $294,861.83 $0.00 4 $137,957.29 $0.00 4 $282,824.17 $0.00 5 $92,975.49 $0.00 5 $220,932.28 $0.00 Net Present Value = Net Present Value = Internal Rate of Return = Internal Rate of Return = Discounted Payback (YY/MM) = Discounted Payback (YY/MM) =
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