Problem I (15 points): Assume that you have completed your degree, and that you will get a job on the next January 1. To help fund your retirement, you plan on investing $2,000 semi-annually (starting 6 months from January 1) in each of the next 25 years at 6%. How much will your account be worth after 25 years? How much would you have in 25 years if the rate was 5% but you made the investment annually starting the day you start the job and continuing on the anniversary of your employment? In each case you have invested $100,000) Please show how you arrived at your answers. Problem II (20 points): Wecare Hospital just bought a new MRI. This is their first MRI purchase, so that all the revenue and expense attributed to the MRI is new. The unit cost $1,500,000. Net operating cash flows for years 1-5 are as follows: $200,000, $400,000, $500,000, $800,000 and $1,600,000. 1. What is the payback? 2. Determine the NPV using a cost of capital of 15% 3. Determine the NPV using a cost of capital of 20% 4. Should the project be accepted at 15%? At 20%? Please explain your response. Problem III (25 points): Cedars Hospital has a cardiology clinic. It projects the following costs for 2015: Total Fixed costs: $225,000 Variable Costs: $60 per patient Charges: $210 per patient o O 1. Using this information, how many patients need to be seen annually for the clinic to break even? 2. What is the break-even point in dollars? 3. How many patients need to be seen for the clinic to earn $6,000? 4. What happens to the break-even point if cost containment strategies save $30,000 in fixed costs