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Dershane Assisted Living Case Study

Decent Essays

The capital investment I chose is the start-up of an assisted living center; specifically, “Dershane’s Assisted Living”. There are several arguments that could be used for the capital investment proposal. Since this would be a new capital investment, financial arguments against the proposal would be the principal factor.
I believe the proposal to establish an assisted living center would be approved; however, the arguments against an establishment of a new capital investment would be valid due to it would be a new establishment.
In making the investment decision, it would be imperative to form a strategic plan, therefore the financial investors, financial institutions, shareholders, and lenders would be able to visualize how the capital investment would be profitable for them as well as have a return on investment.
Barriers for this type of capital investment would include limited assets, return on investment …show more content…

One important factor to consider with assets is the power assets possess. Our core text “Introduction to healthcare financial management, by Smith provides an explanation of the power of assets, and how assets contribute to a lower interest rate. An investment proposal with limited assets will be a breaking point in relation to interest rates. Providing relief in this situation would be dependent on money contributed by shareholders, direct investors (partners), and government affiliates in which I will discuss further in my week four, part two’s assignment.
Return on investment (ROI) time value of money for the investment may not be applicable by the time the investment start making money, I would need to evaluate the investment, the risk of the investment, and the future value of the investment. Other factors that will contribute to the ROI is the interest amount on the borrowed money for the

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