Start by reading and following these instructions: 1. Quickly skim the questions or assignment below and the assignment rubric to help you focus. 2. Read the required chapter(s) of the textbook and an

Start by reading and following these instructions:

1. Quickly skim the questions or assignment below and the assignment rubric to help you focus.

2. Read the required chapter(s) of the textbook and any additional recommended resources. Some answers may require you to do additional research on the Internet or in other reference sources. Choose your sources carefully.

3. Consider the discussions and any insights gained from it.

4. Create your Assignment submission and be sure to cite your sources, use APA style as required, check your spelling.

Assignment:

Assignment Part 1: You are deciding between two investments in the healthcare field. Each investment is projected to produce the following cash flows:

Investment One

Year.                       Cash

0                              -$150,000

1                               $10,000

2                               $8,000

3                               $25,000

4                               $50,000

5                               $25,000

6                               $50,000

Investment Two

Year.                         Cash

0.                               - $100,000

1                                0

2                                0

3                                0

4                                0

5                                $54,000

6                                $65,000

Assume a discount rate of 5%. Which investment would you prefer? Why?

Assignment Part 2: How would your analysis change if you assumed 3% inflation per year?

Assignment Part 3: If investment one was riskier than investment two, how would your calculations change so that additional risk is taken into account? Also, does this new information change your project preference?

Present your findings in the form of a spreadsheet, and include a three-page written report describing your findings, assumptions, and rationale. Make sure to reference any citations using the APA writing style for the essay. The cover page and reference page do not count towards the minimum word amount.

Assignment Expectations:

• Length:
• Structure:
• References:
• Format:
• Filename: