Use the following time line of uneven cash flows and a discount rate of 10% (Exhibit 1) to answer 3a, 3b, and 3c below. (4 points each) Exhibit 1. Timeline of Uneven Cash Flows 2a. PV of $250 cash flow in year 1 = ________________

2b. PV of $400 cash flow in year 5 = ________________ 2c.

NPV of all cash flows = ________________ Neighborhood Clinic projects the following budget information for 2016:

a. Total Volume (# of Visits) 10,000

. Use the following time line of uneven cash flows and a discount rate of 10% (Exhibit 1) to answer 3a, 3b, and 3c below. (4 points each)

Exhibit 1. Timeline of Uneven Cash Flows

2a. PV of $250 cash flow in year 1 = ________________

2b. PV of $400 cash flow in year 5 = ________________

2c. NPV of all cash flows = ________________

Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 10 percent.

Year	Expected Cash Flow
0	($800,000)
1	400,000
2	400,000
3	400,000 What is the projects IRR? (5 points) a. 18.5 percent b. 19.9 percent c. 20.4 percent d. 21.8 percent e. 23.4 percent 8. Net present value (NPV) is a return-on-investment measure that is reported in: (4 points) Dollars Percentage rate Neighborhood Clinic projects the following budget information for 2016: Total Volume (# of Visits) 10,000 Payer Mix Blue Cross 75% Aetna 25% Revenues Blue Cross $25 per visit Aetna $20 per visit Costs 1) Variable Labor $15 per visit Supplies $3 per visit 2) Fixed Cost $15,000 10-1. What are the projected revenues for 2016? (5 points) $200,000 $237,500 $275,500 Cant be determined; not enough information 10-.2. What are the projected costs for 2016? (5 points) $195,000 $210,000 $215,000 Cant be determined; not enough information 10-3. What is the projected net income for 2016? (5 points) $15,500 $26,700 $42,500 Cant be determined; not enough information Time (usually years) None of the above Use the time line representation to answer the questions below. (3 points each) Exhibit 2. Time line representation 11a. ______________ is the process of finding the future value of a lump sum, annuity, or series of cash flows. Discounting Compounding Net present Value None of the above 11b. ______________ is the process of finding the current (or present) value of a lump sum, annuity, or series of cash flows. Discounting Compounding Net present Value None of the above