Unit 5 Assignment 2 – Profitable Investment
Estimated time to complete: 2 hours
Dermatology Associates of Linwood is moving forward with the acquisition of the second practice discussed in Assignment 1. You have been meeting with Sharon, the second location’s practice manager, acquainting her with DAL’s operational standards. Sharon expressed concern about the immediate purchase of the Fraxel laser.
Sharon explained that the former practice physician-owner avoided purchasing one, because the return was not worth the
- In an Excel
document, use one of the concepts presented in chapter 9 to show Sharon why the investment would be profitable.
- Assume the opportunity cost of capital is 12%.
- Include cash flows for six months
- Assume the number of treatments you will need to perform each month.
- The treatment price at DAL’s existing clinic is $1,200. You will need to
lowerthis price point to be more appealing to the new practice’s patient base.
- Below your calculation, insert a text box and provide the rationale for using the method you used, as well as the new price you set for the treatment. Word it as if you are speaking to Sharon, explaining how profitability is determined.
- Include any references in APA style in a textbox at the bottom of your Excel document.
Please review the rubric to ensure that your assignment meets criteria.
- Profitable Investme