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Due to scarce resources, your organization is faced with the decision of choosing between mutually exclusive projects (i.e., build a rehab center or build a

Due to scarce resources, your organization is faced with the decision of choosing between mutually exclusive projects (i.e., build a rehab center or build a neonatal wing). You have been asked to develop a financial analysis of the two projects based on Net Present Value (NPV), Return on Investment (ROI), and Profitability Index (PI). Briefly explain the following concepts and their use/value in assessing the validity of the two mutually exclusive projects:

  • NPV
  • ROI
  • PI
  • Payer (or case) mix

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