Details of this Paper

1.You are the owner of a nursing home. You have wa...

Description

Solution


Question

1.You are the owner of a nursing home. You have watched Gold Cross make a fortune ferrying your patients to doctors and the hospital. You think this is a business you want to get into. You estimate ambulance fees (your sales paid by the insurance company to you) for a year to be 350,000, actual cash expenses for staffing and operating the ambulance to be 325,000 per year. You can buy a used ambulance from the city for 75,000. If your required return is 12 percent and the life of the used ambulance is 4 years, what is the NPV and should you get into this business?

 

Paper#6936 | Written in 18-Jul-2015

Price : $25
SiteLock