ou’re a member of the financial services department at Benson Regional Medical Center. The chief financial officer and chair of the capital budgeting committee, Dana Foster, has requested that you perform some capital analysis of two proposed patient service programs.
Start by downloading the Week 8 Discussion Spreadsheet [XLSX].
Use the spreadsheet to find the information needed to complete a net present value (NPV), internal rate of return (IRR), and a discounted payback period for proposed programs A and B.
Once you have completed the capital budgeting analyses, prepare a narrated PowerPoint presentation that provides:
A brief description of proposed programs A and B.
The cash flows projections for each option from Year 0 through Year 5.
The results and interpretation of the discounted payback period.
Net present value (NPV).
Internal rate of return (IRR).
Your program recommendation along with supporting rationale to the full capital budgeting committee for their consideration.
The presentation should be limited to 10 minutes.
For this discussion:
Post the spreadsheet and slide deck.
Remember to respond to at least one of your classmates’ posts.
The Payback Period in Microsoft Excel video walks you through computing a payback period in Microsoft Excel for a proposed capital investment.
The Solution 6: Choose a Project Based on NPV, IRR, and Payback Period video walks you through choosing a project based on NPV, IRR, and payback period