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    Generally Accepted Accounting Principles

    11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500,000) $52,500 $47,500 $35,500 $530,500 Tax cost (7,875) (7,125) (5,325) (4,575) After-tax cash flow 44,625 40,375 30,175 525,925 Discount factor (7%) .935 .873 .816 .763 Present value $(500,000) $41,724 $35,247 $24,623 $401,281 NPV $2,875 Investor W should make the investment […] More

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    Generally Accepted Accounting Principles

    In recent years healthcare systems have become more like business entities than health care providers. Technology is continually evolving so is healthcare and its financial approach. Generally Accepted Accounting Principles (GAAP), is a guide used by healthcare providers to account for their financial activities. GAAP is a guideline or a group of objectives and concepts […] More