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List of Tables, Figures, and Exhibits | |
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Preface | |
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TheAuthors | |
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Acknowledgments | |
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The Context Of Health Care Financial Management | |
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Introduction | |
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Rising Health Care Costs | |
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The Payment System | |
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Technology 6 | |
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The Aging Population | |
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Prescription Drug Costs and Medicare Part D | |
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Chronic Diseases | |
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Compliance and Litigation | |
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The Uninsured | |
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Efforts to Control Costs | |
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Efforts by Payors to Control Health Care Costs | |
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DRGs | |
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Capitation | |
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Global Payments | |
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APCs | |
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Pay-for-Performance | |
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Cutting Delivery Costs | |
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Shift to Outpatient Services | |
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Cost Accounting Systems | |
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Information Services Technology | |
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Mergers and Acquisitions | |
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Reengineering/Redesign | |
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Alternative Forms of Care | |
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Retail Health Care | |
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Medical Tourism | |
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Medical Home | |
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Cost Control Issues with Ethical Overtones | |
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Summary | |
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Key Terms | |
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Questions and Problems | |
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Health Care Financial Statements | |
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Introduction | |
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The Balance Sheet | |
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Assets | |
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Current Assets | |
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Noncurrent Assets | |
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Liabilities | |
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Current Liabilities | |
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Noncurrent Liabilities | |
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Net Assets | |
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Stockholders' Equity | |
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Notes to Financial Statements | |
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The Statement of Operations | |
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Unrestricted Revenues, Gains, and Other Support | |
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Net Patient Service Revenues | |
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Premium Revenues | |
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Other Revenues | |
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Net Assets Released from Restriction | |
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Expenses | |
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Depreciation and Amortization | |
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Interest | |
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Provision for Bad Debts | |
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Other Expenses | |
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Operating Income | |
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Other Income | |
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Excess of Revenues over Expenses | |
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Below the Line Items | |
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Change in Net Unrealized Gains and Losses on Other | |
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than Trading Securities | |
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Increases in Long-Lived Unrestricted Net Assets | |
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Transfers to Parent | |
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Extraordinary Items | |
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Increase in Unrestricted Net Assets | |
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The Statement of Changes in Net Assets | |
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Changes in Unrestricted Net Assets | |
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Changes in Temporarily Restricted Net Assets | |
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Changes in Permanently Restricted Net Assets | |
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The Statement of Cash Flows | |
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Cash Flows from Operating Activities | |
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Cash Flows from Investing Activities | |
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Cash Flows from Financing Activities | |
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Cash and Cash Equivalents at the End of the Year | |
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Summary | |
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Key Terms | |
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Key Equations | |
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Questions and Problems | |
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Financial Statements for Sample Not-for-Profi t Hospital and For-Profi t Hospital and Notes to Financial Statement | |
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Principles And Practices Of Health Care Accounting | |
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Introduction | |
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The Books | |
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Cash and Accrual Bases of Accounting | |
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Cash Basis of Accounting | |
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Accrual Basis of Accounting | |
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An Example of the Effects of Cash Flows on Profit | |
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Reporting Under Cash and Accrual Accounting | |
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Recording Transactions | |
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Rules for Recording Transactions | |
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The Recording Process | |
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Developing the Financial Statements | |
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The Balance Sheet | |
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Assets | |
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Liabilities | |
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Net Assets | |
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The Statement of Operations | |
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Unrestricted Revenues, Gains, and Other Support | |
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Operating Expenses | |
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Operating Income and Excess of Revenues over Expenses | |
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Increase in Unrestricted Net Assets | |
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Statement of Changes in Net Assets | |
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Statement of Cash Flows | |
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Summary | |
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Key Terms | |
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Questions and Problems | |
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Financial Statement Analysis | |
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Introduction | |
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Horizontal Analysis | |
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Trend Analysis | |
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Vertical (Common-Size) Analysis | |
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Ratio Analysis | |
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Categories of Ratios | |
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Key Points to Consider When Using and Interpreting Ratios | |
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Liquidity Ratios | |
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Current Ratio | |
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Quick Ratio | |
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Acid-Test Ratio | |
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Days in Accounts Receivable | |
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Days Cash on Hand | |
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Average Payment Period | |
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Liquidity Summary | |
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Revenue, Expense, and Profi tability Ratios | |
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Operating Revenue per Adjusted Discharge | |
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Operating Expense per Adjusted Discharge | |
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Salary and Benefi t Expense as a Percentage of Total Operating Expense | |
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Operating Margin | |
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Nonoperating-Revenue Ratio | |
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Return on Total Assets | |
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Return on Net Assets | |
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Revenue, Expense, and Profitability Summary | |
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Activity Ratios | |
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Total Asset Turnover | |
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Fixed Asset Turnover | |
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Age-of-Plant Ratio | |
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Activity Summary | |
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Capital Structure Ratios | |
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Long-Term Debt to Net Assets | |
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Net Assets to Total Assets | |
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Times Interest Earned | |
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Debt Service Coverage | |
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Capital Structure Summary | |
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Summary of Newport Hospital's Ratios | |
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Summary | |
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Key Terms | |
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Key Equations | |
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Questions and Problems | |
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Working Capital Management | |
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Introduction | |
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The Working Capital Cycle | |
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Working Capital Management Strategies | |
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Asset Mix Strategy | |
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Financing Mix Strategy | |
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Cash Management | |
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Sources of Temporary Cash | |
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Bank Loans | |
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Lines of Credit | |
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Commitment Fees | |
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Compensating Balance | |
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Transaction Notes | |
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Trade Credit or Payables | |
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Revenue Cycle Management | |
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Scheduling or Preregistration | |
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Registration | |
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Charge Capture | |
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Coding | |
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Billing | |
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Payment | |
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Collecting Cash Payments | |
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Decentralized Collection Centers and Concentration Banking | |
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Lockboxes | |
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Wire Transfers | |
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Investing Cash on a Short-Term Basis | |
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Treasury Bills (T-bills) | |
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Negotiable Certifi cates of Deposit | |
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Commercial Paper | |
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Money Market Mutual Funds | |
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Forecasting Cash Surpluses and Defi cits-The Cash Budget | |
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Cash Inflows | |
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Cash Outflows | |
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Ending Cash Balance | |
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Accounts Receivable Management | |
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Methods to Monitor Accounts Receivable | |
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Methods to Finance Accounts Receivable | |
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Factoring | |
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Pledging Receivables as Collateral | |
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Methods to Monitor Revenue Cycle Performance | |
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Laws and Regulation for Billing Compliance | |
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Health Insurance Portability and Accountability Act | |
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Summary | |
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Key Terms | |
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Key Equations | |
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Questions and Problems | |
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The Time Value Of Money | |
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Introduction | |
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Future Value of a Dollar Invested Today | |
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Using a Formula to Calculate Future Value | |
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Using Tables to Compute Future Value | |
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Using a Spreadsheet to Calculate Future Value | |
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Present Value of an Amount to Be Received in the Future | |
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Using a Formula to Calculate Present Value | |
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Using Tables to Compute Present Value | |
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Using a Spreadsheet to Calculate Present Value | |
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Annuities | |
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Future Value of an Ordinary Annuity | |
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Using Tables to Calculate the Future Value of an Ordinary Annuity | |
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Using a Spreadsheet to Calculate the Future Value of an Ordinary Annuity | |
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Future Value of an Annuity Due | |
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Present Value of an Ordinary Annuity | |
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Using Tables to Calculate the Present Value of an ordinary Annuity | |
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Using a Spreadsheet to Calculate the Present Value | |
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Present Value of an Annuity Due | |
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Special Situations to Calculate Future or Present Value and Other Excel Functions | |
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What If the Interest Rate Is Not Expressed as an Annual Rate? | |
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How to Compute Periodic Loan Payments Using Excel | |
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How to Calculate the Compounded Growth Rate | |
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How to Calculate the Present Value of Perpetual Annuities | |
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How to Solve for the Interest Rate of a Loan with Fixed | |
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Loan Payments | |
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Summary | |
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Key Terms | |
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Key Formulas | |
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Questions and Problems | |
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Future and Present Value Tables | |
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The Investment Decision | |
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Introduction | |
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Objectives of Capital Investment Analysis | |
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Nonfinancial Benefits | |
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Financial Returns | |
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Ability to Attract Funds in the Future | |
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Analytic Methods | |
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Payback Method | |
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Analysis | |
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Strengths and Weaknesses of the Payback Method | |
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Net Present Value | |
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Using the Small Hospital as an Example of Net Present Value Analysis | |
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Decision Rules Regarding NPV | |
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Using Spreadsheets to Calculate NPV | |
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Strengths and Weaknesses of the NPV Method | |
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Internal Rate of Return | |
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Equal Cash Flows | |
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Unequal Cash Flows | |
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Decision Rules with IRR | |
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Strengths and Weaknesses of IRR Analysis | |
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Using an NPV Analysis for a Replacement Decision | |
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Illustrative Example | |
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Solution | |
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Summary | |
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Key Terms | |
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Key Equations | |
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Questions and Problems | |
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Technical Concerns Regarding Net Present Value | |