Dermatology Associates of Linwood is moving forward with the acquisition of the second practice discussed in Assignment 1. You have been meeting with Sharon, the second location’s practice manager, acquainting her with DAL’s operational standards. Sharon expressed concern about the immediate purchase of the Fraxel laser.
Sharon explained that the former practice physician-owner avoided purchasing one, because the return was not worth the investment. With the purchase price averaging $25,000, you definitely understand Sharon’s concern, but you also know Fraxel treatments at DAL are one of the leading services contributing to your overall revenue. This is primarily due to the fact that Fraxel treatments are classified as a cosmetic procedure, with payment required upfront from the patient.
In an Excel document, use one of the concepts presented in chapter 9 to show Sharon why the investment would be profitable.
Assume the opportunity cost of capital is 12%.
Include cash flows for six months
Assume the number of treatments you will need to perform each month.
The treatment price at DAL’s existing clinic is $1,200. You will need to lower this price point to be more appealing to the new practice’s patient base.
Below your calculation, insert a text box and provide the rationale for using the method you used, as well as the new price you set for the treatment. Word it as if you are speaking to Sharon, explaining how profitability is determined.
Include any references in APA style in a textbox at the bottom of your Excel document.
Please review the rubric to ensure that your assignment meets criteria.
Submit:
Profitable Investment
Rubric
HC306 Unit 5 Assignment 2 – Profitable Investment
HC306 Unit 5 Assignment 2 – Profitable Investment
Criteria
Ratings
Pts
This criterion is linked to a Learning OutcomeProfitability Concept
15.0 pts
Level 5
Identifies and correctly applies at least one appropriate profitability concept; selected concept fully and logically supports the stated argument.
13.5 pts
Level 4
Identifies and correctly applies one appropriate profitability concept; selected concept logically supports the stated argument.
12.0 pts
Level 3
Identifies and somewhat correctly applies one profitability concept; selected concept somewhat supports the stated argument.
10.5 pts
Level 2
Identifies and somewhat correctly applies one profitability concept; selected concept minimally supports the stated argument.
9.0 pts
Level 1
Identifies but incorrectly applies one profitability concept; selected concept does not support the stated argument.
0.0 pts
Level 0
Does not identify any profitability concepts.
15.0 pts
This criterion is linked to a Learning OutcomeCash Flow
15.0 pts
Level 5
Clearly and comprehensively develops a full six-month cash flow statement; data clearly and correctly reflect the assignment scenario.
13.5 pts
Level 4
Clearly develops a full six-month cash flow statement; most data correctly reflect the assignment scenario.
12.0 pts
Level 3
Develops an acceptable six-month cash flow statement; some data correctly reflect the assignment scenario.
10.5 pts
Level 2
Develops a somewhat limited or incomplete six-month cash flow statement; some data do not reflect the assignment scenario.
9.0 pts
Level 1
Develops a very incomplete cash flow statement; data do not reflect the assignment scenario.
0.0 pts
Level 0
Does not complete a cash flow statement.
15.0 pts
This criterion is linked to a Learning OutcomeRationalePRICE-P
15.0 pts
Level 5
Strong, clear, and logical rationale presented that effectively supports the methods used; clearly and correctly explains how profitability is determined.
13.5 pts
Level 4
Clear and logical rationale presented that somewhat supports the methods used; correctly explains how profitability is determined.
12.0 pts
Level 3
Somewhat logical rationale presented that supports the methods used; correctly but briefly explains how profitability is determined.
10.5 pts
Level 2
Somewhat illogical rationale presented that supports the methods used; correctly but briefly explains how profitability is determined.
9.0 pts
Level 1
Very brief and illogical rationale presented; does not supports the methods used; incorrectly explains how profitability is determined.
0.0 pts
Level 0
Does not provide a rationale.
15.0 pts
This criterion is linked to a Learning OutcomeWriting Style, grammar, spelling and APA FormattingPRICE-I
5.0 pts
Level 5
Writing is completely error free in grammar, spelling and APA formatting, citations and 3 or more references.
4.5 pts
Level 4
A few very minor errors noted in grammar, spelling, or APA formatting, citations and at least 3 references.
4.0 pts
Level 3
A few minor errors noted in grammar, spelling, and APA formatting, citations and 2-3 references.
3.5 pts
Level 2
Several errors noted in grammar, spelling, or APA formatting, citations and 1-2 references.
3.0 pts
Level 1
Some major errors noted in grammar, spelling, and APA formatting, citations and only 1 reference.
0.0 pts
Level 0
Many major errors in grammar, spelling, and APA formatting, citations and references.
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