Week 5 - Discussion

1. How valid and reliable do you think HIT investment decisions are currently? Why? 2. What do you think will drive adoption of interoperable EHRs- cost savings or consumer preferences? Why? Provide an external reference other than the textbook to support your answer. 3. Compare and contrast the different benefit analyses- cost, cost-effectiveness, and cost-utility analysis. Which do you prefer, and why?

Investment projects can be evaluated using static or dynamic methods. Dynamic valuation methods include Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Time. If we must choose one of the 3 investment evaluation methods. What is the best method or the one that provides us with the most information for making decisions and why?

How can CVP analysis be used to predict future costs and profitability? Describe how CVP analysis is used at Salt River Company. Discuss a concept associated with CVP in conversation.  Consider using an article to summarize or apply the CVP concepts.  Please include proper citations.

Beside the dollar cost, what other costs should you consider when comparing alternative solutions to a problem or goal?

Critically analyse the benefits and limitations of the NPV and Accounting Rate of Return (ARR) investment appraisal methods

The internal rate of return (IRR) of a project must be compared to its Blank______ in order to determine the acceptability of the project. Multiple choice question. real rate of return required rate of return profitability index accounting rate of return

What tool can you use to incorporate probabilities into the What-If analysis? Sensitivity analysis Decision Tables Cost-volume-profit (CVP) graph Degree of operating leverage Margin of Safety

A quantitative analysis enables a decision maker to put a “price” on the sum total of the qualitative characteristics in a decision situation. Explain this statement, and give an example.

Besides the dollar cost, what other costs should you consider when comparingalternative solutions to a problem or goal?

Which option is most profitable, keeping or replacing?Insert numerical value. What is one relevant qualitative consideration for this decision?

Explain present value, future value, and opportunity cost.  Give an example of each concept.

What does Highest and Best Use consist of? Group of answer choices: (1) legally permissible (2) physically possible (3) return on investment (4) maximally productive (1) legally permissible (2) physically possible (3) financially feasible (4) maximally productive (1) legally permissible (2) physically pleasing (3) financially feasible (4) maximally productive (1) legally permissible (2) physically possible (3) financially feasible (4) maximum income production

According to the Productivity Index, which project should be chosen? Explain why people use the Productivity Index. Explain why a Productivity Index so closely correlates with the results of the Net Present Value method.

Explain the benefits of a Return-on-Investment structure within an investment center framework.

A cost-benefit analysis, or CBA, is an evaluation of all of the monetary repercussions of a program. Explain?

Sensitivity analysis determines the:   Multiple Choice   degree to which the net present value reacts to changes in a single variable.   ideal ratio of variable costs to fixed costs for profit maximization.   net present value range that can be realized from a proposed project.   range of possible outcomes given that most variables are reliable only within a stated range.   degree to which a project relies on its initial costs.