Question: apitol Health Plans, Inc. is evaluating two different methods for providing home health services to its members . Both methods involve contracting out for services,
apitol Health Plans, Inc. is evaluating two different methods for providing home health services to itsmembers Both methods involve contracting out for services, and the health outcomes and revenues arenot affected by the method chosen. The cost of capital is The incremental cash flows for the decision are all outflows. Here are the projected flows:
YearMethod AMethod B$$$$$$$$$$$$
What is the IRR for Method A
What is the IRR for Method B
Note: Think about this one carefully. Format is xxx or xxxx if positive; xxx or xxxx if negative. Enter null results as NA
What is the NPV for Method A
What is the NPV for Method B
Note: Enter positive results as $xxxxxx Enter negative results as $xxxxxx
Holding any qualitative factors aside, which method should be chosen based on this analysis?
Note: Enter answer as A or B
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