ACC403 (MoD 2 SLP) Present Value and Capital Budgeting Essay

ACC403 (MoD 2 SLP) Present Value and Capital Budgeting - Essay Example It has been seen from the historical price chart that the price of the stock has been increased gradually in the last two years. From the historical prices it can be assumed that the price of the stock will increase but there are many other factors associated with the assumption. The death of Mr. Steve Jobs, the founder and C.E.O. may create negative impact among the investors. Despite of this negative factor the researcher is expecting that the price of the stocks of Apple will increase based on the historical price and the fact that even after the death of Mr. Jobs the stock price of the company has increased gradually. The stock price of Apple was 339.32 on January 3, 2012 and it was 447.28 on January 3, 2012 (Yahoo Finance, 2012). So the rate of return is 31% where the savings account interest rate of America is less than 1% (Bank of America, 2012). So it would be the right decision to buy the futures of Apple stock instead of investing in the savings account. Every company needs to acquire some new asset or implement some new product for expanding their business. Different types of risks are associated with the company. In this paper the researcher has described the factors associated with a hospital when they are going to acquire new machinery. The hospital is going to buy a GE LogiqBook XP Portable Ultrasound Machine. The cost of the machine is $15,999 (Absolute Medical Equipment, 2011). Purchasing of the machine can be funded from the retained earnings of the hospital. The portable ultrasound machine certainly enhance the portfolio of the hospital as it would help the hospital to acquire more customer, as it is more patient friendly. The cash flow from the investment can be assumed from the past data of the hospital. The researcher has to find out the number of patients in the last month and the last financial year. Based on the data the researcher can assume what would be the number of patient when