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Healthcare organizations use present value of money (PV), and future value of money (FV) for their investments because these concepts help them evaluate the profitability
Healthcare organizations use present value of money (PV), and future value of money (FV) for their investments because these concepts help them evaluate the profitability and financial viability of their investment decisions over a period of time. PV, or present value is used to determine the current value of a future cash flow or investment. It takes into account the value of money received in the future and what it would be worth compared to the money received today. This can help organizations estimate a potential return on investments and make informed decisions about how to handle investments. FV, future money, is used to determine the value of an investment at a future point in time. This takes into account compounding of interest and returns over time. This can help determine potential growth over a period of time. Healthcare organizations use Present value of money and future value of money to evaluate profitability and long-term impact of their investments. Utilizing both concepts in conjunction helps them make informed decisions about their current resources
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