As an aspiring manager you are tasked with creating a report which covers the following topics: 1. Evaluate the role and significance of accounting and financial management in ensuring the effective operation of a healthcare organization in either the public or private sector (5 marks)

2. Within academic literature it is said that the primary objective of a company is maximize the owner's wealth. Critically evaluate why the principle of shareholder wealth maximization may not align with the strategic objectives of a healthcare organization.

. Gulf Sovereign Fund is looking to take on a new investment offering private healthcare treatments. The company will evaluate two mutually exclusive projects, whose details are given below. The company's cost of capital is 7%. BD Millions Project A Project B Initial Investment (450) (675) Year 1 150 420 Year 2 180 360 Year 3 180 180 Year 4 300 90 Year 5 285 30 Calculate the Payback period Calculate the Net Present Value (NPV) of both projects Calculate the Internal Rate of Return (IRR) of both projects (12 marks)

3b. Critically discuss the merits of each investment appraisal method, then discuss the result of the evaluations you have made of the two projects and advise the company which project should be undertaken (10 marks)

4. Critically evaluate the use of a Balanced Scorecard in your organization (or a previous organization you have worked in)

a. Outline the Key Strategy (What is the overall goal?)

b. Develop a series of metrics based on Financial Performance, Customer, Internal Processes and finally Learning and Growth

c. Explain and identify how your Key Performance Indicators (KPIs) will meet the strategy goals

d. Evaluate the challenges, discuss the risks of your organization within the Balanced Scorecard and the challenges to achieving the goals in point 4c (30 marks)

5. UAE Public Hospital Trust is considering an investment into Hospital Information System, it has two choices via leasing or buying the software and equipment. The purchase price is AED 1,250,000 and the software/machine has a 6-year life. If it buys the software UAE Public Hospital Trust will need to fund it using capital that costs them 9% per year. The trust estimates maintenance of the system will be AED 50,000 per annum. Alternatively, the lease payments will be AED 265,000 per year for 6 years with rentals payable at the start of each year.

a. What are the respective present value costs of purchasing the machine or leasing it? (7 marks)

b. Consider the theoretical cost of Debt, Preference Shares and Ordinary Shares rank them from most expensive to cheapest. (6 marks)

c. Critically evaluate the key factors that influence a healthcare company's decision to raise finance through debt or equity