For this assignment we had to review the Analyzing Financial Indicators for Decision Making. I also had to look at three different phases of the simulation review and during there are different categories I had to look into, in this paper it will discuss the selection I have made for the simulation review and why I chose the them it will also break down the section for capital shortage, funding options for the equipment acquisition and the finally one that would be discuss is the funding options for the capital expansion.
The cost cutting option in the capital shortage that I choose to select would have to be changing the skill mix and reducing agency staff. The reason I went with these too was because the hospital annual savings would be $3,515,134 and it would only affect the hospital slightly. I think it important that those factors are considered when making major changes to the company. The loan option I pick was loan option 1 because the amount of the loan was for 1,500,000 and the interest rate was at 9.
45%. The terms for the loan were for 12 months and the monthly payments were only at 131,490 and there was no prepayment limitation, even though I would pay $56,589 and only save $21,297 which it may seem like it’s a lot. But I think it would be better the loan option 2 because even though the loan is for the same price the difference comes in where the interest is 9. 00% which is good and better than the 9. 45% the monthly payments are $313.
The Term Paper on Loan Processing at Capital One
This marketing effort, which was planned to take the form of a major mail drop, was designed to increase the volume of funded loans in about six weeks when potential customers start returning these applications. It was clear to everyone at Capital One that the operations of loan processing would play a major role in determining if the upcoming mail drop would be a success. With 14 funded loans ...
00 cheaper which is not by much but in loan option 2 you have and prepayment limitation in it which is six prepayment. I also notice that the total paid into would be around $53,873, and you would only be saving $20,254, the way I see it you have a better chance with loan option 1 because when you do the math this would be for the company. The outcome of my decision was correct when cutting cost and selecting loan options according to the analyzing financial indicator for decision making May2*03.
The strategy that I would use from the funding options for the equipment acquisition would have to be refurbished equipment loan for the high-scanner CT scanner amount is $469 and the interest range around 9% the monthly installments would be in 15 payments for 36 terms. I feel for this equipment the refurbished would be best. The x-ray machine and ultrasound system I went with capital lease and operating lease these two systems would be best fit with the two options I have choose for them.
The reason for this is when looking into the different options and the changes in the terms and payments this is how I base my decision on these two. The x-ray monthly installments would consist of ten installments and the terms would be frothy months, the advance payments would be two and the present value of it is only 370, I feel that this is a better deal for the time being because we don’t want to go over or cut into our budget.
Now for the ultrasound machine the best way to go in my opinion would be the operating lease because it was only nine monthly installments on a thirty-six month terms and there is also an upgrade option one hundred and twenty-six and the equipment age is only two years so when the time comes I can and would be able to upgrade to a new and better machine when needed. The strategy did match up the revamping ECH’s equipment inventory.
The Business plan on Article of Capital Budgeting Survey
This research is motivated by two major factors: (1) the over twenty year hiatus since the last thorough review ofthe capital budgeting survey literature, and (2) past appeals to the finance academic community by researchers to explore neglected areas ofthe capital budgeting process. In response, and using a four-stage capital budgeting process as a guide, the authors review the capital budgeting ...
The funding sources I selected was the tax-exempt revenue bonds because I felt that this would be a better because of it’s a bond and its tax-exempt and the cost of insurances was cheaper than the other options I have seen. The insurance on this option was $125,250 even thought the interest rate was a little more and the prepayments is a ten years and the periods of funds would be for three years. The loan maturity was for twenty-five years for two of them and fifteen years on one I also was looking at the total cost of the project was at $75,000 and the NPV of project was at $219,739 when I making my selection.
The outcome of my selection did not match up the best option for this section would have to be the Hud 242 loan insurances programs. I have learn that there is three part of the simulation which consist of Capital shortage, Funding options for Equipment Acquisition, and Funding Options for Capital Expansion, even though there are different options to choose form you have to make sure that you choose the one that best fit the selection, because you should just pick one that looks like it would work just because it’s cheap.
The correct thing to do is look at the pros and cons and sees how it will affect us in all ways. The one thing I would do different is for the funding options for capital expansions would be to read through each option closely and make sure I understand what is being said that way I don’t make a mistake like I did. I do plan to apply everything that I have learned in this simulation review in my future job. I do feel it’s important that I implantation groups and procedures according to which data is available.
When using the knowledge that I have learned to diagnose the correct problems, while using the techniques and other tools to solve the underlining problems. The simulation applies when decision making techniques and solving the problems when they occur in the department. This simulation also shows mw how to improve the cash flow by managing the capital situation. I know it’s important to have a good cash flow it is very essential to the organization, having a good cash flows helps you any many ways such as borrowing power it would help out a lot and it will help with a steady income.
The Essay on Working Capital Simulation: Managing Growth
The Harvard Business Simulation asked that one act as the C.E.O. of Sunflower Nutraceuticals (which will be referred to as SNC throughout this paper). Within the simulation there were phase in which decisions were made to help SNC with the growth of the company. This paper will explain the decisions made will influence SNC to estimate the value of the company, the working capital of the company, ...
