Simulation Review

1150 Words5 Pages
Simulation Review Paper Kimberly Roehler HCS 405 September 26, 2011 Sandra DiPietro Simulation Review This is a stimulation review of a cardiac care unit that is facing working capital shortages. As the lead financial consultant brought into address the financial indicators and evaluate to bring working capital back to in order at the Elijah Heart Center (EHC). The other financial analyst will focused around addressing issues as they relate to this particular cardiac care unit; what funding can be acquired to garner medical equipment; what funds can be used for capital expansion; finally a summation of findings and a conclusion of what the overall stimulation showed, in regards to how through the analyst were.…show more content…
Also, x-ray machines last for a long time, the average life-span 15 years. However, it would have been better for EHC to purchase under an operating lease an ultrasound machine instead of a capital lease. An operating lease has lower upfront payment and lower monthly installments. Having more upgrade options with an operating lease, that will help take care of technological obsolescence. Phase 3: Evaluate Funding Options for Capital Expansion Improving and growing for the future, increase capacity to accommodate the increase patient inflow. Elijah Heart Center will embark upon a 75million dollar expansion to a new heart hospital able to house, 100 new private rooms and countless other amenities. It is the recommendation of the financial consultant that EHC chose the option for capital expansion with a, tax-exempt revenue bonds. Tax-exempt revenue bonds showed to be the lowest option among the three financial options. The net present value (npv) would be 21million dollars, higher than a private bank funding, yet lower than that of a HUD 242 loan insurance program. The interest is lower than all three options. Since the bonds are not callable for ten years, EHC will not profit from a fall in interest rates if it were to occur within those ten years. Despite the variables and lower interest rates, it was determine that a, tax-exempt
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