- Create a 10- to 15-slide presentation in which you:
- Evaluate effective working capital management techniques.
- Evaluate alternative capital projects.
- Analyze risks associated with capital projects.
- Describe the decision-making factors in lease versus buy.
- Describe the effect of financing strategies on the cost of capital.
- Describe the benefits and risks of debt financing.
Expert Solution Preview
This presentation is designed to provide a comprehensive understanding of various financial management techniques that are important for medical students to learn. It covers topics such as working capital management, capital projects, lease versus buy decision-making strategies, financing strategies, and the risks and benefits of debt financing.
1. Evaluation of effective working capital management techniques:
Effective working capital management is crucial for any organization to meet its short-term financial obligations. This includes managing cash, accounts receivables, and inventory effectively. Techniques such as cash flow forecasting, credit management, and inventory management can help improve working capital management.
2. Evaluation of alternative capital projects:
Capital projects refer to long-term investments that involve significant costs. Evaluating alternative capital projects is important to ensure that the company invests in the projects that provide the highest returns. This can be done through techniques such as net present value analysis, internal rate of return, and payback period analysis.
3. Analysis of risks associated with capital projects:
Capital projects involve certain risks such as cost overruns, delays, and changes in market conditions. It is important to identify and analyze these risks and develop strategies to mitigate them.
4. Description of decision-making factors in lease versus buy:
Deciding whether to lease or buy is an important financial decision for any company. Factors such as the cost of financing, tax benefits, and flexibility should be considered when making this decision.
5. Description of the effect of financing strategies on the cost of capital:
The cost of capital refers to the cost of financing a company’s operations. Financing strategies such as equity financing and debt financing can have a significant impact on the cost of capital. It is important to understand the trade-offs involved in choosing different financing strategies.
6. Description of the benefits and risks of debt financing:
Debt financing involves borrowing money from investors or financial institutions. It can provide tax benefits and allow companies to maintain control over their operations. However, it also carries risks such as interest payments, repayment obligations, and the potential for default.
This presentation provides important financial management concepts that medical students should understand. Effective financial management is essential for the success of any organization, and these concepts will help students develop the skills needed to make informed financial decisions.