Read Case 16 (pages 97-101) from Gapenski’s Cases in Healthcare
Finance – “Seattle Cancer Center.”
Create a presentation in Microsoft PowerPoint (PPT), suitable for
presentation to a senior level executive. The final product should
include a title slide with your name and the name of the case. Two or
three slides per question (see below) should be sufficient to respond
appropriately to the case prompts. Slide numbers should be included.
Use of non-case related graphics is not required. All Excel work
should be imported into the presentation in table format (in the body
of the document) or enclosed as an Appendix within the same document.
Use of external resources and articles is encouraged, but not
required.
In your presentation, provide a response to the following questions
from the case study:
Should the Center lease the equipment?
What is the maximum lease payment that the Center would be willing to pay?
What would be the NAL to the Center if tax-exempt (municipal) debt
financing was available to the Center?
Would the availability of tax-exempt debt financing make leasing more
or less attractive to the Center than before? Why?
As a baseline, assume all cash flows have the same risk; that is,
ignore residual value risk and use the same discount rate for all
lessee cash flows.
