Please use data to answer questions 2-5.

cont INSTRUCTIONS Answer the questions below and submit your answers in the Homework 10 nin areas Fade Hospital is considering the following capital opportunities And Cash Flows Investment Ultrasound Machine $650000 5050 DO S 260,000 $ 210.000 $ 320,000 S 350.000 $ 350,000 Expansion of Emergency Department $750,000 $750,000 $ 420,450 $ 450 $ 200 $ 5.705 70600 New Walk-in Primary Care Clinic $1.000.000 51 500 000 $ 20.000 $ 20.000 $ 20.0005 20 000 $ 20.000 Health on Wheels DOW) mobile $400 000 000 000 5 7 000 5 70.000 112000 $ 112.000 $ 175.000 A. Calculate the Net Present Vale (NPV and Internal Rate of turn for each investment. The opportunity cost rate is 15% REMINDERS 1) The formula for finding the PV of a cash flow is PVFJ[141 Where is the Excel symbol for POWER) 2) NPV is the sum of the PV of all the cash flows 3) IRR is the rate of return of the original cash flows 4) Use the function in cel C e rrad the oral cash flows Cost Investment Ultrasound Machine Expansion of Emergency Department New W in Primary Care Heath on Wh O Wmobile din 6. Calculate the expected Rate of Return, $650.000 $750.000 $1.000.000 $400.000 given the following seals and probab Remains Scenarios Worsens Stable Probability Economy Improves Investment nd Machine U New Wohan Primary Care Clint 51.000.000 Hesth on W C HOW) mobile clinit 5000 000 C. Complete the table to calculate an Expected Rate of Retur, R for the PORTFOLIO cost ofPortolio al from Ultrasound Machine abovel New Care Who 51.000.000 $ 52.800.000 QUESTIONS: 1. What is the Net Present Value (NPV) of the Ultrasound Machine investment? 2. What is the Internal Rate of Return (IRR) for the new Walk-In Primary Care Clinic investment? 3. Which of the investment opportunities are projected to earn a return greater than Eagle Clinic's opportunity cost rate? 4. Why should managers be careful if deciding to invest in the Health on Wheels mobile clinic? 5. What is the expected rate of return E[R] for the Emergency Department expansion investment? 6. What is the expected rate of return E[R] for the Walk-in Primary Care Clinic? How is the weighted average method used to calculate an investment's E[R] given different scenarios? 8. What is the expected return of the Portfolio? 9. How is the calculating the portfolio E[R] different than calculating the E[R] for a single investment? 10. Why would some healthcare organizations group investments together in a portfolio? cont INSTRUCTIONS Answer the questions below and submit your answers in the Homework 10 nin areas Fade Hospital is considering the following capital opportunities And Cash Flows Investment Ultrasound Machine $650000 5050 DO S 260,000 $ 210.000 $ 320,000 S 350.000 $ 350,000 Expansion of Emergency Department $750,000 $750,000 $ 420,450 $ 450 $ 200 $ 5.705 70600 New Walk-in Primary Care Clinic $1.000.000 51 500 000 $ 20.000 $ 20.000 $ 20.0005 20 000 $ 20.000 Health on Wheels DOW) mobile $400 000 000 000 5 7 000 5 70.000 112000 $ 112.000 $ 175.000 A. Calculate the Net Present Vale (NPV and Internal Rate of turn for each investment. The opportunity cost rate is 15% REMINDERS 1) The formula for finding the PV of a cash flow is PVFJ[141 Where is the Excel symbol for POWER) 2) NPV is the sum of the PV of all the cash flows 3) IRR is the rate of return of the original cash flows 4) Use the function in cel C e rrad the oral cash flows Cost Investment Ultrasound Machine Expansion of Emergency Department New W in Primary Care Heath on Wh O Wmobile din 6. Calculate the expected Rate of Return, $650.000 $750.000 $1.000.000 $400.000 given the following seals and probab Remains Scenarios Worsens Stable Probability Economy Improves Investment nd Machine U New Wohan Primary Care Clint 51.000.000 Hesth on W C HOW) mobile clinit 5000 000 C. Complete the table to calculate an Expected Rate of Retur, R for the PORTFOLIO cost ofPortolio al from Ultrasound Machine abovel New Care Who 51.000.000 $ 52.800.000 QUESTIONS: 1. What is the Net Present Value (NPV) of the Ultrasound Machine investment? 2. What is the Internal Rate of Return (IRR) for the new Walk-In Primary Care Clinic investment? 3. Which of the investment opportunities are projected to earn a return greater than Eagle Clinic's opportunity cost rate? 4. Why should managers be careful if deciding to invest in the Health on Wheels mobile clinic? 5. What is the expected rate of return E[R] for the Emergency Department expansion investment? 6. What is the expected rate of return E[R] for the Walk-in Primary Care Clinic? How is the weighted average method used to calculate an investment's E[R] given different scenarios? 8. What is the expected return of the Portfolio? 9. How is the calculating the portfolio E[R] different than calculating the E[R] for a single investment? 10. Why would some healthcare organizations group investments together in a portfolio