A Project Requires an Initial Outlay of $100 000 and Promises

question 72

Essay

A project requires an initial outlay of $100 000 and promises net returns of $18 500 per year over a twelve-year period. If the project has a residual value of $4000 after twelve years, what is the rate of return?

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Definitions:

Authorized Person's Signature

The signature of an individual who has been officially empowered to perform a particular action or represent a certain authority.

Administrative Simplification Compliance Act (ASCA)

Identifies limited situations where paper claim forms may be submitted for payment (rather than electronic submission); signed into law on December 27, 2001, as Public Law 107-105.

CMS-1500

A standard form used in the United States to submit healthcare claims to Medicare and Medicaid, as well as many private insurers and managed care organizations.

Third-Party Reimbursers

Entities that provide payment for healthcare services on behalf of beneficiaries, such as insurance companies.