WK6DC

1. Cleverley, W. O., Song, P. H., &  

Prior to completing this discussion, review Assignment 1 in Chapter 19 of your course text. In your initial post, answer the following question:

• What issues need to be taken into consideration to determine which is the lowest cost alternative?

Your initial post must be 300 to 350 words. Cleverley, J. O. (2011). Essentials of health care finance (7th ed). Sudbury, MA: Jones & Bartlett Learning.

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• Chapter 19: Capital Project Analysis
  • This chapter focuses on capital investment decision process including who should be involved, four stages of the decision process and information needed for decision making. The concepts of NPV, discount rate and weighted average cost of capital are examined.
• Chapter 20: Consolidations and Mergers
  • This chapter discusses the basic theories in the field of consolidations, mergers and acquisitions. The common methods for valuation of a potential target firm are also explained.
• Chapter 21: Capital Formation
  • This chapter focuses on the differences between debt and equity financing. The factors that influence the desirability of alternative sources of financing are also examined.
• Chapter 22: Working Capital and Cash Management
  • This chapter focuses on the concepts of cash management and working capital. The activities covered in the cash budget affecting working capital are examined.
• Chapter 23: Developing the Cash Budget
  • This chapter discusses the importance of cash budget and focuses on how to prepare a cash budget.

Recommended Resources

Article

1. Prepare a cash budget (Links to an external site.)Links to an external site..  Retrieved from http://www.va-interactive.com/inbusiness/editorial/finance/ibt/cash_bud.html
   • This article uses examples to demonstrate the process of preparing a cash budget.

Textbook Powerpoint Presentations

1. Chapter 19 Capital Project Analysis
2. Chapter 20 Consolidations and Mergers
3. Chapter 21 Capital Formation
4. Chapter 22 Working Capital and Cash Management
5. Chapter 23 Developing the Cash Budget
6. HFMA PowerPoint Presentation Disbursements
7. HFMA PowerPoint Presentation Contract Management