Gapenski’s (2018) case study, Southeastern Homecare

Southeastern Homecare Apply your knowledge. Read Gapenski’s (2018) case study, Southeastern HomecarePreview the document Case 17 in 6th edition. This week’s applied discussion will again differ from other Health Sciences discussions. You will apply what you have learned to perform financial calculations based on the case study and then make recommendations. For this discussion, please post the answers to questions 1-2 together. Toward the end of the module discussion, post the final question in a new post. 

  1. Identify the concept of the Cost of Capital as it pertains to Southeastern Homecare. Is it important to adjust for divisional differences? Explain. 
  2. Southeastern Homecare has two operating divisions: the Healthcare Services Division and the Information Systems Division. Southeastern’s divisions are each considering two investment opportunities for next year. In which of the projects should Southeastern invest? State Accept or Reject under each opportunity and explain why you chose that decision. 
    Healthcare services division: IRR CCC Decision A new office in Naples 9.3% 8.8% ? A new office in Sarasota 9.8% 8.8% ? Information services division: IRR CCC Decision New healthcare record system 12.2% 12.7% ? Expanded billing software 13.2% 12.7%? 
  3. Now, compose a separate post toward the end of the module that discusses this question: Thinking about all you have learned this week, what are 1-2 takeaways for you from this case? How can this takeaway help you in your work and/or continued studies?