Description
If you scroll to the rt you will see year 4 and 5 Assume 11% cost of capital
Determine the cash inflows and outflows for each year. Calculate Net Present Value, Internal Rate of Return, Modified internal rate of return payback period and discounted payback period | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
Nurse Triage Salaries | $ 523,800 | $ 549,990 | $ 577,490 | $ 606,364 | $ 636,682 | $ 668,516 |
Fore-casted ER Cost Reductions | $ 400,000 | $ 800,000 | $ 848,000 | $ 900,577 | $ 955,512 | $ 1,013,798 |
New IT Specialist’s Salary | $ 150,000 | $ 154,500 | $ 159,135 | $ 163,909 | $ 168,826 | $ 173,891 |
Costs of Facility Renovations | $ 30,000 | $ – | $ – | $ – | $ – | $ – |
Necessary Capital Equipment Purchases | $ 117,000 | $ 3,510 | $ 3,510 | $ 3,510 | $ 3,510 | $ 3,510 |
Net Cash Flow: | ||||||
Present Values of Net Cash Flows: | ||||||
Net Present Value: | ||||||
Internal Rate of Return (IRR): | ||||||
Modified Internal Rate of Return (MIRR): |
Jiranna Healthcare Cash Flows, 2013 (in thousands) | |||
Cash Flows from Operating Activities | |||
Cash received from patient and third-party payers | $ 10,671 | ||
Cash received from operating revenue sources | 800 | ||
Cash received from nonoperating revenue sources | 270 | ||
Cash payments to employees | (5,600) | ||
Cash payments to suppliers of goods and services | (4,800) | ||
Net cash flow from operating activities | $ 1,341 | ||
Cash flows from Investing Activities | |||
Cash payments for purchase of plant assets | (1,200) | ||
Cash payments for purchase of long-term investments | (670) | ||
Proceeds from sales of plant assets | 80 | ||
Proceeds from sale of long-term investments | 60 | ||
Net cash flow from investing activities | (1,730) | ||
Cash flows from Financing Activities | |||
Proceeds from issuance of 6% bonds payable | 4,000 | ||
Principal payments on long-term debt | (300) | ||
Cash payments to retire 7% bonds payable | (3,200) | ||
Net cash flow from financing activities | 500 | ||
Net increase/(decrease) in cash | $ 111 |
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