Answer each question in ESSAY STYLE. No less than two paragraphs if possible. No plagerism 9) What happens to the present value factor as the discount rate or the interest rate increases fo

Answer each question in ESSAY STYLE. No less than two paragraphs if possible. No plagerism

9)            What happens to the present value factor as the discount rate or the interest rate increases for a given time period? as the discount rate or the interest rate decreases?

11)         How many years are there in a typical perpetuity

14)         What is the relationship between the present value of a single dollar payment formula and the present value of an ordinary annuity formula for the same number of years and the same discount rate ? Assume a discount rate of 10 percent and an n value of 5 periods. Explain with an example

Chapter 7 (2,3,4,7)

2)            People contribute funds to this facility because the benefit they get from it is derived is community-based rather than the monetary compensation they hope of getting in return therefore the monetary costs are also factors have to be taken into consideration

3)            From a capital investment point of view, what are the goals of a healthy care facility?

4)            What are the primary drawbacks of the payback method as a capital budgeting technique?

7)            If a hospital were considering a new women’s health initiative, what spillover cash flows might result?

Chapter 8 (2,3,4,7,16)

2)            What avenues are available for for-profit and not-for-profit health care providers to increase their equity position

3)            What are the advantages and disadvantages to a taxpaying entity in issuing debt as opposed to equity?

4)            Does adding debt increase or decrease the flexibility of a healthcare provider? Why?

7)            Name at least two factors that might cause a facility to call in its bond

16)         Why might an organization enter into a leasing arrangement

Chapter 10 (2,3,5,6)

2)            What is the purpose of the budget? Why are requests for budget revisions necessary? When should a formal request for a budget revision be submitted?

3)            What are the major components of the planning-and-control cycle?

5)            What are the advantages and disadvantages of the participatory approach to budgeting?

6)            What are the four budgets of a health care organization? Briefly discuss each.

Chapter 13 (2,3,4,6,8)

3) What were the major events and trends that caused CMS to institute a value-based payment structure for Medicare? What is the triple aim?

4)            What is the rationale behind Medicare’s refusal to pay for certain readmissions? What is the risk?

6)            What is the purpose of copayments and deductibles?

8)            What are DRGs? Why was the DRG system developed?