Question

Chapter 14 489 CHAPTER 14 ment Exercise 14-1: Comparable Data in a Graph oiew Figures 14-1 through 14-5. Each of the five figures presents a graph depicting some ope of comparative data. Required Locate healthcare information that can reasonably be compared. (1) Prepr data. (2) Using your data, crea parative Figures 14-1 through 14-5. te one or more graphs similar to those found in Review Table 14-3 and the accompanying text. Assumptions Two hospitals report their annual projected revenue for five years to the local newspaper for a story on the area's future economic outlook. However, Hospital 1 has applied a cumu- lative inflation factor of 5% per year while Hospital 2 has not applied any inflation factor. Thus the information is not properly comparable. Projected Revemue Year 4 Year l Year 5 Year 2 Year 3 Hospital1 $20,000,000 $22,500,000 $27.500,000 $27.500,000 $0,000,000 Hospital 2 $20,000,000 $21,000,000 $25,000,000 $24.000,000 $26,000,000 Required Revise Hospital 2's projections by applying a cumulative inflation factor of 5% per year. Assignment Exercise 14-3 The head of your department is a prominent researcher. A health research foundation has asked him travel to London to give an important speech at a conference. He will then travel to Paris to tour a research facility before returning home. Although his travel expenses are being funded by the foundation, he will sill need to take along some personal money. Con- sequently, he asks you to figure the exchange rates for $500 and for $1,000 in both pounds and euros. He explains that he is trying to judge the spending power of U.S. dollars when he can decide how much personal money to take on converted to the other currencies so the trip

Answer 1

14-3

Current exchange rates are: 1GBP=1.27 USD and 1 EUR= 1.12 USD

Hence,

Amount($)	GBP	EUR
500	393.7008	446.4286
1000	787.4016	892.8571

14-2

First Year the hospital 2 has revenue of 20,000,000

And the next year growth rate is =(21000000-20000000)/20000000=5%

If the Inflation rate is 5%, then next year revenue= 20000000*1.05*1.05=22,050,000

Similarly Projected revenue for subsequent will be like below:

Year	Actual Figure without Inflation adjustment	Growth Rate	Inflation adjusted figure
1	20,000,000.00		20,000,000.00
2	21,000,000.00	5%	22,050,000.00
3	25,000,000.00	19%	27,562,500.00
4	24,000,000.00	-4%	27,783,000.00
5	26,000,000.00	8%	31,603,162.50