Question: 1. Net Present Value and Internal Rate of Return. Below are the projected revenues and expenses for a new clinical nurse specialist program being established
1.Net Present Value and Internal Rate of Return. Below are the projected revenues and expenses for a new clinical nurse specialist program being established by your healthcare organization. The nurses would provide education while patients are in the hospital and home visits are on a fee-for-service basis after patients have been discharged
Should the hospital undertake the program if its required rate of return is 12%?
Note:it must be assumed that the revenues and costs in this problem represent cash flows. Present value analysis is based on cash, not revenue or expenses. Provide a response to support the findings in the table listed below. Your response should be at least a half page long in addition to the table. Please include citations.
Year One
Year Two
Year Three
Year Four
Total
Revenue
$100,000
$150,000
$200,000
$250,000
$700,000
Costs
$150,000
$150,000
$150,000
$150,000
$600,000
$ <50,000>
$0
$50,000
$100,000
$100,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
