9/1/2014
UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT
Chapter 4 - Time Value Analysis
PROBLEM 1
Find the following values for a lump sum:
- The future value of $500 invested at 8 percent for one year
- The future value of $500 invested at 8 percent for f

9/1/2014
UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT
Chapter 6 - Debt Financing
PROBLEM 1
Assume Venture Healthcare sold bonds that have a ten-year maturity, a 12 percent coupon rate with
annual payments, and a $1,000 par value.
a. Suppose that two year

Question 1
State of Economy
Poor
Below Avg.
Avg.
Above avg.
Excellent
T Bill
Project A
Project B
S&P 500
Equity in MSI
T Bill is the least risky
with the lowest rate of
return. Equity in MSI is
a little more risky with
a rate of return of
10% . Project B

9/1/2014
UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT
Chapter 5 - Financial Risk and Required Return
PROBLEM 1
Consider the following probability distribution of returns estimated for a proposed project that involves a
new ultrasound machine:
State of th