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Assignment:
Each of these tools is used to make capital investment decisions. Describe each and provide at least one example. Compare and contrast each and describe the pros and cons. Identify which you would prefer to use, and explain your rationale.
Refer to the local clinic scenario introduced in Module 3 along with the capital budgeting process introduced in 586 of the text. Assume that you have a corporate cost of capital of 8%. Break down your clinic into departments (rather than divisions as provided in Exhibit 15.8), and assign High, Average, or Low Risk to each. Then, identify projects or capital investments required by each department and classify the risk. Present your findings in the format provided in Exhibit 15.8 on page 587. Along with your results, explain your rationale for the assignment of risk as well as your selected interest rate.
Assignment Expectations:
Assignment:
Each of these tools are used to make capital investment decisions. Describe each and provide at least one example. Compare and contrast each and describe the pros and cons. Identify which you would prefer to use, and explain your rationale.
Refer to the local clinic scenario introduced in Module 3 along with capital budgeting process introduced in 586 of the text. Assume that you have a corporate cost of capital of 8%. Break down your clinic into departments (rather than divisions as provided in Exhibit 15.8), and assign High, Average, or Low Risk to each. Then, identify projects or capital investments required by each department and classify the risk. Present your findings in the format provided in Exhibit 15.8 on page 587. Along with your results, explain your rationale for the assignment of risk as well as your selected interest rate.
Assignment Expectations:
Assignment:
Each of these tools is used to make capital investment decisions. Describe each and provide at least one example. Compare and contrast each and describe the pros and cons. Identify which you would prefer to use, and explain your rationale.
Refer to the local clinic scenario introduced in Module 3 along with the capital budgeting process introduced in 586 of the text. Assume that you have a corporate cost of capital of 8%. Break down your clinic into departments (rather than divisions as provided in Exhibit 15.8), and assign High, Average, or Low Risk to each. Then, identify projects or capital investments required by each department and classify the risk. Present your findings in the format provided in Exhibit 15.8 on page 587. Along with your results, explain your rationale for the assignment of risk as well as your selected interest rate.
Assignment Expectations:
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