When doing cash flow analysis to determine Net Present Value and IRR, a critical component of the calculation and resulting analysis is based on the chosen or presumed Cost of Capital. Please note that this is NOT necessarily the actual cost of debt or the specific loan to be used to finance the project, and in often a much more complex number derived from numerous other sources such as our overall existing corporate structure of debt (not for profit) overall cost of debt and equity (which for the for-profit is often referred to as the Capital Asset Pricing Model (CAPM) or some modified form of each to incorporate additional risk factors. We may also choose to use a refinement of those numbers such as a very specific divisional costs of capital, actual debt or equity, and or results from "first-pass" analysis calculations of scenario analysis of our more local expectation of best case, expected case and worst case to derive our statistical findings of standard deviation and coefficient of variation to further refine a "second-pass" or better cost of capital rate to do our discounting.

Explain how stand-alone, market and corporate risk would be applied to Large Investor Owned health systems, small-investor owned health systems and not-for profit businesses. Be sure to think about not only the different corporate legal structures noted above, but also, specific capital structures and specific project scenario analysis results of standard deviation and coefficients of variation.