Question

You will need to calculate a ROI based on the following information: Assume that the costs...

You will need to calculate a ROI based on the following information:

Assume that the costs associated with the purchase of EHR software are as follows:

  • Purchase price: $25,000 per provider
  • One time implementation fee: $10,000 per provider
  • Annual maintenance fee: 18% of the purchase price applied after the first year

Estimate the ROI (%) at the end of five years for a group of 15 providers. Assume that the only monetary benefit considered is that each physician will earn $44,000 as incentive (one time only).

Show all work and steps.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You are in charge of an EHR implementation project at your clinic. Before the project can...
You are in charge of an EHR implementation project at your clinic. Before the project can proceed, your upper management has asked you to put together an ROI analysis on the costs and benefits of the EHR implementation project. Your management is requiring that you include cost benefit analysis for the next five years. EHR implementation takes place in 2015 and benefits from the implementation are assumed to begin right away in 2015. The ROI analysis should include years 2015...
You will calculate the tangible and intangible costs and benefits of IS. Assume you are buying...
You will calculate the tangible and intangible costs and benefits of IS. Assume you are buying a number of personal computers (PCs) and implementing IS to monitor the traffic of people and goods in a port of entry in a specific country. Perform the following tasks: Estimate the possible IS costs. Justify the types of costs and amounts you have identified. Estimate the benefits of your IS. Calculate the net present value (NPV) and the ROI. Present a Payback Analysis....
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company...
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 44,000 Rets per year. Costs associated with this level of production and sales are given below: Unit Total Direct materials $ 20 $ 880,000 Direct labor 6 264,000 Variable manufacturing overhead 3 132,000 Fixed manufacturing overhead 7 308,000 Variable selling expense 4 176,000 Fixed selling expense 6 264,000 Total cost $ 46 $ 2,024,000 The Rets normally sell for $51...
PROBLEM 6–22 Special Order Decisions LO6–4 Polaski Company manufactures and sells a single product called a...
PROBLEM 6–22 Special Order Decisions LO6–4 Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 30,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . Direct labor . . . . . . . ....
Assume ABC Company has asked you to not only prepare their 2017 year-end Balance Sheet but...
Assume ABC Company has asked you to not only prepare their 2017 year-end Balance Sheet but to also provide pro-forma financial statements for 2018. In addition, they have asked you to evaluate their company based on the pro-forma statements with regard to ratios. They also want you to evaluate 3 projects they are considering. Their information is as follows: End of the year information: Account 12/31/17 Ending Balance Cash 50,000 Accounts Receivable 175,000 Inventory 126,000 Equipment 480,000 Accumulated Depreciation 90,000...
What is Medicare Part C? Provides the aged with home health care Provides the aged with...
What is Medicare Part C? Provides the aged with home health care Provides the aged with prescription drugs Enables low-income aged to participate in Medicaid Provides a voluntary managed care option for the aged How is Medicaid financed? It is financed entirely by the federal government. It is financed entirely by the state. States receive the same percentage of federal support. States with lower per capita incomes receive a greater percentage of federal support If a healthcare system is "free"...
JUST LIGHTING CASE STUDY ( Domestic and International Sourcing) Just lighting is an enterprise in London...
JUST LIGHTING CASE STUDY ( Domestic and International Sourcing) Just lighting is an enterprise in London Ontario which currently sells light fitting from various manufactures to a growing market of contractors and developers. It has grown from a $1 million turnover to a $5 million turnover organization. It does not have any borrowing or loans as it has a sound cash flow. Just lighting owns a facility comprising of an office block, a small warehouse and a large packing area...
Subject: Human Resource Management Main question: Which benefit plans would you choose, and which wouldn't you...
Subject: Human Resource Management Main question: Which benefit plans would you choose, and which wouldn't you choose and give reasons why you would or would not want a benefit that were used in making the benefit selections (specially at at entry level making $30000). PROCEDURES: Assume that you recently graduated from college and are just starting a new job at a large firm. You will be receiving a starting net pay (net of all taxes and mandatory deductions) of $30,000....
After reading the following article, how would you summarize it? What conclusions can be made about...
After reading the following article, how would you summarize it? What conclusions can be made about Amazon? Case 12: Amazon.com Inc.: Retailing Giant to High-Tech Player? (Internet Companies) Overview Founded by Jeff Bezos, online giant Amazon.com, Inc. (Amazon), was incorporated in the state of Washington in July 1994, and sold its first book in July 1995. In May 1997, Amazon (AMZN) completed its initial public offering and its common stock was listed on the NASDAQ Global Select Market. Amazon quickly...
Please read the article and answear about questions. Determining the Value of the Business After you...
Please read the article and answear about questions. Determining the Value of the Business After you have completed a thorough and exacting investigation, you need to analyze all the infor- mation you have gathered. This is the time to consult with your business, financial, and legal advis- ers to arrive at an estimate of the value of the business. Outside advisers are impartial and are more likely to see the bad things about the business than are you. You should...