** The Financial management of Hospitals and Healthcare Organizations by Micheal Nowicki 4 edition**

**Chapter 7-8**

**Exercise**

**Problem 1:**** **XYZ Sleep Disorder Clinic invests $106, 944 for 5 years to retire a debt. Assuming the clinic can invest at 7% compounded annually, how much is the debt XYZ needs to retire? See cash budgeting section of the chapter for an example.

**Problem 2:**** **Using the hourly rate method of setting charges, calculate the charge per modality necessary to recover total costs given at Southwest IV Infusion Clinic:

Total projected cost per of IV Infusions = $600,000

Total projected hours of use per year = 10,000 hours

Modality = 30 minutes

**Problem 3:**** **Using the surcharge method of setting charges, calculate the charge necessary to cover total costs for 50,000 IV bags given at Southwest IV Infusion Clinic.

Total projected cost of IV bags and administration = $90,000

Total projected cost of IV bags = $30,000

**Problem 4:**** **Southwest Hospital wants to invest $200,000. What is the FV compounded annually at 5 percent for eight years? At 5 percent compounded semiannually for eight years?