Answer all the Questions. (Word Limit-2000-3000 words) As an aspiring manager you are tasked with c ...

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Answer all the Questions. (Word Limit-2000-3000 words) As an aspiring manager you are tasked with creating a report which covers the following topics: 1. Discuss and assess the importance of accounting and finance functions in the operations of a healthcare organization, either in the public or private sector. (5 marks) 2. Within academic literature it is said that the primary objective of a company is maximise the owner’s wealth. Critically discuss why a healthcare organisation is unlikely to pursue a strategy of Shareholder Wealth Maximisation. (11 marks) (note: if your organisation is government owned/funded, they are effectively the majority shareholder) 3. Bahrain Sovereign Fund is looking to take on a new investment offering private healthcare treatments. The company will evaluate two mutually exclusive projects, whose details are given below. The company’s cost of capital is 8%. BD Millions Project A Project B Initial Investment (150) (225) Year 1 50 140 Year 2 60 120 Year 3 60 60 Year 4 100 30 Year 5 95 10 Calculate the Payback period Calculate the Net Present Value (NPV) of both projects (12 marks) 3b. Critically discuss the merits of each investment appraisal method, then discuss the result of the evaluations you have made of the two projects and advise the company which project should be undertaken (11 marks) 4 4. Critically evaluate the use of a Balanced Scorecard in your organisation (or a previous organisation you have worked in) a. Outline the Key Strategy (What is the overall goal?) b. Develop a series of metrics based on Financial Performance, Customer, Internal Processes and finally Learning and Growth c. Explain and identify how your Key Performance Indicators (KPIs) will meet the strategy goals d. Evaluate the challenges, discuss the risks of your organisation within the Balanced Scorecard and the challenges to achieving the goals in point 4c (30 marks) 5. Jeddah Hospital Trust is considering an investment into Hospital Information System, it has two choices via leasing or buying the software and equipment. The purchase price is SAR 950,000 and the machine has a 6-year life. If it buys the software Jeddah Hospital Trust will need to fund it using capital that costs them 7% per year. Manama estimates maintenance of the system will be SAR 25,000 per annum. Alternatively, the lease payments will be SAR 220,000 per year for 6 years with rentals payable at the start of each year. a. What are the respective present value costs of purchasing the machine or leasing it? (7 marks) b. Consider the theoretical cost of Debt, Preference Shares and Ordinary Shares rank them from most expensive to cheapest. (7 marks) c. Recently one of your company directors has attended a finance conference, on their return the director has decided the company should fund all projects with internal sources of financing as they are essentially ‘free’. Critically discuss if you agree with this statement.