Thanks again for your help on the last question. Your clear and concise answers really helped me understand this stuff. Honestly this is the one class I am having the most trouble with and the professor's lectures are not helping me much.

Can you help with this assignment? It is a variation of the case from the last assignment.

There is no rush on this so anytime in the next 48 hours would be great.

Thanks.

For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. For the exclusive use of K. Weaver, 2016. This document is authorized for use only by Kimberly Weaver in HCMBA 6234 Financial Management taught by Neil G Cohen, George Washington University from October 2016 to December 2016. Case Green Valley Medical Center (GVMC) Learning Objectives 1 Learn importance of Free Cash Flow 2 Appreciate use of cost of capital as the discount rate 3 Appreciate distinction between capital flows and operating flows 4 Use of NPV, PI, IRR, PP decision criteria to formulate a recommendation to accept or reject a projec Reading CFW Chapter 5, pps. 61-89 QUESTIONS 1 What are the key elements of GVMC's strategy? 2 Populate the PET Tab with the relevant cash flows gleaned from the case. 3 Populate the Laundry Tab with the relevant cash flows gleaned from the case. Check the decision criteria (NPV, PI, IRR, PP) calculations to make sure they are accurate. 4 In the box below, make approipraite recommendations about accepting/rejecting one or both of the proposals Use Ex. 2 Qualitative Evaluation and Ex. 3 Score Sheet. (Use the enter key to keep line length within 7-8 columns.) endation to accept or reject a project from the case. ned from the case. to make sure they are accurate. ut accepting/rejecting one or both core Sheet. Enter data only in the rows where data is given in the case. Leave the others blank. 1 2 3 A B C D E SECTION I. CALCULATE THE CHANGE IN EBIT, TAXES, AND DEPRECIATION (THIS BECOMES F G H I J K L AN INPUT IN THE CALCULATION OF OPERATING CASH FLOWS IN SECTION II) PET PROPOSAL 4 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 1 2 3 4 5 6 7 8 9 10 5 Units sold 6 Sales price per unit Sales revenue 0 0 0 0 0 0 0 0 0 0 Less: variable cost of good sold 0 0 0 0 0 0 0 0 0 0 Less: fixed cost of goods sold 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0% 0 0 0 0 0 0 0 0 0 0 7 8 9 10 Less: variable GS&A expense 11 Less: GS&A expense 12 Less: depreciation 13 Equals: total operating expense 14 Equals: EBIT 15 Income tax rate & income tax 16 17 SECTION II. CALCULATE OPERATING CASH FLOW (THIS BECOMES AN INPUT IN THE 18 CALCULATION OF FREE CASH FLOW IN SECTION IV 19 Operating cash flow: 20 EBIT 21 Minus: Taxes 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Plus: Depreciation Equals: Operating cash flows 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SECTION III. CALCULATE THE NET WORKING CAPITAL (THIS BECOMES AN INPUT IN THE CALCULATION OF FREE CASH FLOWS IN SECTION IV) Change in Net Working Capital: Revenue 0 0 0 Total operating expense 0 0 0 Receivables (enter days in Column B) 0 0 0 0 Inventory (enter days in Column B) 0 0 0 0 Payables (enter days in Column B) 0 0 0 0 Net working capital needs 0 0 0 0 Liquidation of working capital Investment in working capital 0 0 0 0 SECTION IV. CALCULATE FREE CASH FLOW (USING INFORMATION CALCULATED IN SECTIONS II AND III, IN ADDITION TO THE CHANGE IN CAPITAL SPENDING Free cash flow: Operating cash flow 0 0 0 Minus: Invesment in net working capital 0 0 0 Minus: Investment in PPE (CapEx) 0 0 0 Plus: Salvage value Free cash flow 0 0 0 Cumulative free cash flow 0 0 0 SECTION V. CALCULATE DECISION CRITERIA USING FREE CASH FLOW Discount rate (K-wacc) 0.0% Net Present Value (NPV) 0.0 Profitability Index (PI) #DIV/0! Internal Rate of Return (IRR) Err:523 Payback Period 0 inspection of cumulative FCF - row 45 0 0 0 0 0 0 1 2 3 A B C D E SECTION I. CALCULATE THE CHANGE IN EBIT, TAXES, AND DEPRECIATION (THIS BECOMES F G H I J K L AN INPUT IN THE CALCULATION OF OPERATING CASH FLOWS IN SECTION II) LAUNDRY PROPOSAL 4 Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 1 2 3 4 5 6 7 8 9 10 5 Units sold 6 Sales price per unit Sales revenue 0 0 0 0 0 0 0 0 0 0 Less: variable cost of good sold 0 0 0 0 0 0 0 0 0 0 Less: fixed cost of goods sold 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0% 0 0 0 0 0 0 0 0 0 0 7 8 9 10 Less: variable GS&A expense 11 Less: GS&A expense 12 Less: depreciation 13 Equals: total operating expense 14 Equals: EBIT 15 Income tax rate & income tax 16 17 SECTION II. CALCULATE OPERATING CASH FLOW (THIS BECOMES AN INPUT IN THE 18 CALCULATION OF FREE CASH FLOW IN SECTION IV 19 Operating cash flow: 20 EBIT 21 Minus: Taxes 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 Plus: Depreciation Equals: Operating cash flows 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SECTION III. CALCULATE THE NET WORKING CAPITAL (THIS BECOMES AN INPUT IN THE CALCULATION OF FREE CASH FLOWS IN SECTION IV) Change in Net Working Capital: Revenue 0 0 0 Total operating expense 0 0 0 Receivables (enter days in Column B) 0 0 0 0 Inventory (enter days in Column B) 0 0 0 0 Payables (enter days in Column B) 0 0 0 0 Net working capital needs 0 0 0 0 Liquidation of working capital Investment in working capital 0 0 0 0 SECTION IV. CALCULATE FREE CASH FLOW (USING INFORMATION CALCULATED IN SECTIONS II AND III, IN ADDITION TO THE CHANGE IN CAPITAL SPENDING Free cash flow: Operating cash flow 0 0 0 Minus: Invesment in net working capital 0 0 0 Minus: Investment in PPE (CapEx) 0 0 0 Plus: Salvage value Free cash flow 0 0 0 Cumulative free cash flow 0 0 0 SECTION V. CALCULATE DECISION CRITERIA USING FREE CASH FLOW Discount rate (K-wacc) 0.0% Net Present Value (NPV) 0.0 Profitability Index (PI) #DIV/0! Internal Rate of Return (IRR) Err:523 Payback Period 0 inspection of cumulative FCF - row 45 0 0 0 0 0 0