4.2 This 82 year old female was admitted for acute exacerbation of chronic obstructive pulmonary disease. The progress notes indicate that the patient received a transfusion for anemia. The discharge diagnosis state acute exacerbation nonautologous packed red blood cells was given via peripheral vein. What codes are assigned for this case?

4.2 This 82 year old female was admitted for acute exacerbation of chronic obstructive pulmonary disease. The progress notes indicate that the patient received a transfusion for anemia. The discharge diagnosis state acute exacerbation nonautologous packed red blood cells was given via peripheral vein. What codes are assigned for this case?
ICD-9-CM Code(s):

a)491.21,284.19,99.04

b) 491.21, 284.19, 285.9, 99.04

c) 496, 284.19, 99.04

d) 491.21, 284.19, 285.9, 99.02

4.3 This 35 year old female patient has carcinoma of the upper outer left breast. She had a lumpectomy performed and a sentinel lymph node biopsy of the axillary lymph node. The pathology report for the lymph node states no pathological change. What codes are assigned in this case?
ICD-9-CM Diagnosis Code(s) with POA indicator:
ICD-9-CM Procedure Code(s):
ICD-10-CM Code(s):
ICD-10-PCS Code(s):

4.4 An 8 year old male hemophiliac is admitted with acute blood loss anemia following uncontrolled bleeding. He was given 4 units of packed red blood cells via the peripheral vein. While in the hospital he also received his regular preventive infusion of clotting factors. Which of the following answers would be correct?
ICD-9-CM Code(s):

a)286.0,99.06,99.03

b) 285.1,286.0,99.04,99.06

c)286.0,285.1, 99.06, 99.03

c) 286.0,285.1, 99.06, 99.03

d) 285.1, 99.06, 99.03
ICD-10-CM Code(s):
ICD-10-PCS Code(s):

1. 4.1 This 45 year old man underwent colon resection for carcinoma of the transverse colon. The physician progress note on postoperative day 2 states anemia. Hemoglobin and hematocrit levels dropped significantly after surgery, and a blood transfusion was ordered. How is the anemia coded?
ICD-9-CM Code(s):

a) 285.1

b)998.11

c) 998.11,285.1

d) Query the physician because opportunity exists to improve documentation of etiology of anemia.
ICD-10-CM Code(s):

2. 4.5 What code(s) is/are assigned for a patient admitted for an azathioprine I drug- induced aplastic anemia? The patient has peripheral neuropathy of multiple joints of the lower extremities secondary to severe rheumatoid arthritis.
ICD-9-CM Diagnosis Code(s) with PDA indicator and MS-DRG:
ICD-9-CM Procedure Code(s):
ICD-10-CM Code(s):
ICD-10-PCS Code(s):

3) When should acute blood loss anemia following surgery be coded as a complication of the surgery?
a) Whenever there’s a large amount of blood loss following a surgery.
b) When the physician states that the large amount of blood loss is due to the surgery and causing the anemia
c) When anemia follows surgery and hemoglobin levels are elevated beyond the normal range
d) Never. Anemia is never considered a complication; instead , it’s considered a disease or disorder.

Project Management **Assumption: You have 90 products in your backlog, and you estimate it will be a 10 week installation process per product (including client time). (1a) Assume you only have 1 full time employee dedicated to launching products. If you start launching April 1st, how long does it take to clear your backlog? (1b) If you have 2 full time employees, how long will it take to clear your backlog? (1c) If the Sales team sells an additional 5 products in May, 8 in June, 8 in July, 10 in August & September, and 12 in each month in Q4, build a forecasting model for the total launches per month and the backlog growth each month. (Assuming you have 2 full time employees) (1d) Assuming no restrictions in thinking, what ideas might you come up with to clear out the backlog sooner?

Loan amortization Jan sold her house on December 31 and took a $40,000 mortgage as part of the payment. The 10-year mortgage has a 12% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year. a. What is the dollar amount of each payment Jan receives?

Loan amortization

Jan sold her house on December 31 and took a $40,000 mortgage as part of the payment. The 10-year mortgage has a 12% nominal interest rate, but it calls for semiannual payments beginning next June 30. Next year Jan must report on Schedule B of her IRS Form 1040 the amount of interest that was included in the two payments she received during the year.

a. What is the dollar amount of each payment Jan receives? Round your answer to the nearest cent.

How much interest was included in the first payment? Round your answer to the nearest cent.

How much repayment of principal was included? Round your answer to the nearest cent.

How do these values change for the second payment?

b. How much interest must Jan report on Schedule B for the first year? Round your answer to the nearest cent.

c. Will her interest income be the same next year?

Problem 5-1

Future valueIf you deposit $10,000 in a bank account that pays 12% interest annually, how much would be in your account after 5 years? Round your answer to the nearest cent.Problem 5-8 Loan amortization and EARYou want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 10% with interest paid monthly.a. What will be the monthly loan payment? Round your answer to the nearest cent.b. What will be the loan’s EAR? Round your answer to two decimal places.

Problem 5-26

PV and loan eligibility

You have saved $5,000 for a down payment on a new car. The largest monthly payment you can afford is $450. The loan will have a 11% APR based on end-of-month payments.

a. What is the most expensive car you could afford if you finance it for 48 months? Round your answer to the nearest cent.

b. What is the most expensive car you could afford if you finance it for 60 months? Round your answer to the nearest cent.

Problem 5-2

Present value

What is the present value of a security that will pay $47,000 in 20 years if securities of equal risk pay 8% annually? Round your answer to the nearest cent.

Problem 6-9

Expected Interest Rate

The real risk-free rate is 3.3%. Inflation is expected to be 2.7% this year, 4% next year, and then 2.25% thereafter. The maturity risk premium is estimated to be 0.05(t – 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Round your answer to two decimal places.

Problem 5-1

Future value

If you deposit $10,000 in a bank account that pays 12% interest annually, how much would be in your account after 5 years? Round your answer to the nearest cent.

Problem 5-8

Loan amortization and EAR

You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over 5 years (60 months), and the nominal interest rate will be 10% with interest paid monthly.

a. What will be the monthly loan payment? Round your answer to the nearest cent.

b. What will be the loan’s EAR? Round your answer to two decimal places.

Problem 5-4

Time for a lump sum to double

If you deposit money today in an account that pays 3.5% annual interest, how long will it take to double your money? Round your answer to two decimal places.

Problem 5-9

Present and future values for different periods

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. Round your answers to the nearest cent.

a. An initial $200 compounded for 1 year at 4%.

b. An initial $200 compounded for 2 years at 4%

c. The present value of $200 due in 1 year at a discount rate of 4%.

d. The present value of $200 due in 2 years at a discount rate of 4%.

Problem 5-3

Finding the required interest rate

Your parents will retire in 24 years. They currently have $250,000, and they think they will need $2,400,000 at retirement. What annual interest rate must they earn to reach their goal, assuming they don’t save any additional funds? Round your answer to two decimal places.

Problem 6-11

Default Risk Premium

A company’s 5-year bonds are yielding 9.9% per year. Treasury bonds with the same maturity are yielding 5.6% per year, and the real risk-free rate (r*) is 2.7%. The average inflation premium is 2.5%, and the maturity risk premium is estimated to be 0.1(t – 1)%, where t = number of years to maturity. If the liquidity premium is 1.1%, what is the default risk premium on the corporate bonds? Round your answer to two decimal places.

Problem 6-1

Yield Curves

TERM

RATE

6 months

4.86%

1 year

5.36%

2 years

5.52%

3 years

5.72%

4 years

5.84%

5 years

6.04%

10 years

6.36%

20 years

6.65%

30 years

6.80%

a. Plot a yield curve based on these data.

b. What type of yield curve is shown?

c. What information does this graph tell you?

d. Based on this yield curve, if you needed to borrow money for longer than one year, would it make sense for you to borrow short term and renew the loan or borrow long term? Explain.

Problem 5-5

Time to reach a financial goal

You have $11,122.76 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $210,000. You expect to earn 12% annually on the account. How many years will it take to reach your goal? Round your answer to two decimal places at the end of the calculations.

Problem 5-6

Future value: annuity versus annuity due

a. What’s the future value of a 11%, 5-year ordinary annuity that pays $200 each year? Round your answer to the nearest cent.

b. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.

PROBLEM

b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Round all answers to two decimal places.

Amortization schedule

a. Set up an amortization schedule for a $37,000 loan to be repaid in equal installments at the end of each of the next 3 years. The interest rate is 11% compounded annually. Round all answers to the nearest cent.

b. What percentage of the payment represents interest and what percentage represents principal for each of the 3 years? Round all answers to two decimal places.

c. Why do these percentages change over time?

Problem 6-5

Maturity Risk Premium

The real risk-free rate is 3.5%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 8%. What is the maturity risk premium for the 2-year security? Round your answer to two decimal places.

Problem 5-7

Present and future values of a cash flow stream

An investment will pay $50 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6.

a. If other investments of equal risk earn 8% annually, what is its present value? Round your answer to the nearest cent.

b. If other investments of equal risk earn 8% annually, what is its future value? Round your answer to the nearest cent.

1. “A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.”

1. “A stock has an initial price of $100 per share, paid a dividend of $2.00 per share during the year, and had an ending share price of $125. Compute the percentage total return, capital gains yield, and dividend yield.”

1a) Percentage total return = (Dividends paid + Change in market value) / Initial stock price

Percentage total return = ($2 + ($125-$100))/ $100 = $27 / $100 = 0.27 or 27%

1b) Capital gains yield = (Ending share price – Initial share price)/Initial share price

Capital gains yield = ($125 – $100) / $100 = $25 / $100 = .25 or 25%

1c) Dividend yield = Dividend per share earn during the year / the initial stock price

Dividend yield = $2.00 / $100 = 0.02 or 2%

Total Return

2. “You bought a share of 4 percent preferred stock for $100 last year. The market price for your stock is now $120. What was your total return for last year?”

Total return = (Dividend paid + Change in market value) / Initial stock price

Total return = ((4% x $100) + ($120 – $100)) / $100 = ($4 + $20) / $100 = 0.24 or 24%

CAPM

3. “A stock of a beta of 1.20 the expected market rate of return is 12% and a risk-free rate of 5 percent. What is the expected rate of return of the stock?”

Expected rate of return = Risk-free rate + (Beta x (Expected market rate – Risk-free rate))

Expected rate of return = 5% + (1.20 x (12% – 5%) = 5% + (1.20 x 7%) = 5% + 8.4%

Expected rate of return = 13.4%

WACC

4. “The Corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and the cost of debt is 7%. The tax rate is 30%. What is the company’s weighted average cost of capital (WACC)?”

WACC = (Weight of Equity x Cost of Equity x (1 – Tax rate)) + (Weight of Debt x Cost of debt)

WACC = (80% x 12% x (1 – 30%)) + (20% x 7%) = (6.72% + 1.4%) = 8.12%

FLOTATION COSTS

5. “Medina Corp. has a debt-equity ratio of .75. The company is considering a new plant that will cost $125 million to build. When the company issues new equity, it incurs a flotation cost of 10 percent. The flotation cost on new debt is 4 percent. What is the initial cost of the plant if the company raises all equity externally?”

% of Debt = 0.75 / (1+0.75) = 42.86%

% of Equity = 100% – % of Debt = 100% – 42.86% = 57.14%

Plant funded through debt: 42.86% x $125 million = $53,575,000

Flotation cost on Debt = $53,575,000 x 4% = $2,143,000

Plant funded through equity: 57.14% x $125 million = $71,425,000

Flotation cost on equity = $71,425,000 x 10% = $7,142,500

Total Flotation cost = $2,143,000 + $7,142,500 = $9,285,5000

Initial Cost = $125,000,000 + $9,285,5000 = $134,285,500

1. What are the roles of beliefs and claims in critical thinking?

1. What are the roles of beliefs and claims in critical thinking?

2. What are some cognitive biases that affect critical thinking?

Critical Thinking Skills:

3. In this first week’s reading the Collegiate Learning Assessment (CLA) Project of the Council for Aid to Education has provided us with a list of 21 items that they deem important. Perform your own evaluation of this list. Do any of these come as a surprise? Which would you count as the top 2 and which the bottom 2? Justify your decision.

Ch. 2 of Critical Thinking.

4. What are some techniques for understanding and evaluating the structure and content of arguments?

5. How do cognitive biases affect critical thinking?

Cognitive Bias.

6. We all have exhibited a certain level of cognitive bias. Present one such example and explain why it’s a valid example and how you could have mitigated it from your decision process.

Ch. 3 of Critical Thinking

7. Which degrees of vagueness are acceptable and unacceptable?

8. How important is the clarity of language?

Prepare a 700-word paper (In APA format) to yourself on critical thinking including the following:

Prepare a 700-word paper (In APA format) to yourself on critical thinking including the following:

· Explain critical thinking.

· Provide an example from your personal experience of critical thinking applied to a business decision.

· Discuss the importance and benefits of using critical thinking.

· Relate the importance and benefits of critical thinking to the example provided.

· Discuss ways you might use critical thinking in your current job or chosen career path.

Format your assignment consistent with APA guidelines.

84) A project will produce an operating cash flow of $7,300 a year for three years. The initial investment for fixed assets will be $11,600, which will be depreciated straight-line to zero over the asset’s 4-year life. The project will require an initial $500 in net working capital plus an additional $500 every year with all net working capital levels restored to their original levels when the project ends. The fixed assets can be sold for an estimated $2,500 at the end of the project, the tax rate is 34 percent, and the required rate of return is 12 percent. What is the net present value of the project?

84) A project will produce an operating cash flow of $7,300 a year for three years. The initial investment for fixed assets will be $11,600, which will be depreciated straight-line to zero over the asset’s 4-year life. The project will require an initial $500 in net working capital plus an additional $500 every year with all net working capital levels restored to their original levels when the project ends. The fixed assets can be sold for an estimated $2,500 at the end of the project, the tax rate is 34 percent, and the required rate of return is 12 percent. What is the net present value of the project?

A) $8,398.29 B) $6,353.41 C) $7,072.72 D) $7,532.27 E) $9,896.87

84)

85) Tool Makers manufactures equipment for use by other firms. The initial cost of one customized machine is $850,000 with an annual operating cost of $10,000, and a life of 3 years. The machine will be replaced at the end of its life. What is the equivalent annual cost of this machine if the required rate of return is 15 percent and we ignore taxes?

A) $347,647.78 B) $351,610.29 C) $375,797.41 D) $382,280.42 E) $340,008.02

85)

86) Kay’s Nautique is considering a project which will require additional inventory of $128,000 and will also increase accounts payable by $45,000. Accounts receivable are currently $80,000 and are expected to increase by 10 percent if this project is accepted. What is the initial project cash flow needed for net working capital?

A) $91,000 B) $75,000 C) $99,000 D) $136,000 E) $181,000

86)

87) Wheels and More needs to maintain 8 percent of its sales in net working capital. The firm is considering a 5-year project which will increase sales from their current level of $110,000 to $146,000, $152,000, $158,000, $164,000, and $155,000 for Years 1 to 5 of the project, respectively. What amount should be included in the project analysis for net working capital for Year 3 of the project?

A) $12,640 B) −$480 C) −$12,640 D) $0 E) $480

87)

19

88) Tech Enterprises is considering a new project that will require $325,000 for fixed assets, $160,000 for inventory, and $35,000 for accounts receivable. Short-term debt is expected to increase by $100,000. The project has a 5-year life. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for 25 percent of their original cost and the net working capital will return to its original level. The project is expected to generate annual sales of $554,000 and costs of $430,000. The tax rate is 35 percent and the required rate of return is 15 percent. What is the net present value of this project?

A) −$65.83 B) $3,026.45 C) $6,202.48 D) −$2,318.29 E) $4,138.25

88)

89) The Down Towner is considering a 4-year project that will require $164,800 for fixed assets and $42,400 for net working capital. The fixed assets will be depreciated straight-line to a zero book value over the life of the project. At the end of the project, the fixed assets can be sold for $37,500 and the net working capital will return to its original level. The project is expected to generate annual sales of $195,000 and costs of $117,500. The tax rate is 35 percent and the required rate of return is 13 percent. What is the project’s net present value?

A) $48,909.09 B) $67,316.67 C) $26,485.23 D) $36,500.00 E) $59,488.87

89)

90) In working on a bid project you have determined that $245,000 of fixed assets will be required and that they will be depreciated straight-line to zero over the 5-year life of the project. You have also determined that the discount rate should be 14.5 percent and the tax rate will be 35 percent. In addition, the annual cash costs will be $68,500. After considering all of the project’s cash flows you have determined that the required operating cash flow is $68,700. What is the amount of annual sales revenue that is required?

A) $142,018.27 B) $157,202.19 C) $152,311.89 D) $162,515.75 E) $147,807.69

90)

20

91) Which one of these is a correct definition? A) Current liabilities are debts that must be repaid in 18 months or less. B) Net working capital equals current assets plus current liabilities. C) Current assets are assets with short lives, such as inventory. D) Tangible assets are fixed assets such as patents. E) Long-term debt is defined as a residual claim on a firm’s assets.

91)

92) The corporate controller is generally responsible for which one of these functions? A) cash management B) tax reporting C) capital expenditures D) financial planning E) credit management

92)

93) The corporate treasurer oversees which one of these areas? A) financial accounting B) information systems C) cost accounting D) financial planning E) tax reporting

93)

94) Which one of these is a cash outflow from a corporation? A) sale of common stock B) sale of an asset C) profit retained by the firm D) dividend payment E) issuance of debt

94)

95) Which one of these statements is correct? A) When selecting one of two projects, managers should only consider the total cash

flow from each. B) All overseas operations present the same amount of risk. C) Accountants record sales and expenses after the related cash flows occur. D) The value of an investment by a firm depends on the size, the timing, and the risk

of the investment’s cash flows. E) Most investors prefer greater risk over less risk.

95)

96) An investment is acceptable if the payback period: A) is equal to or greater than some pre-specified period of time. B) is negative. C) is less than some pre-specified period of time. D) is equal to, and only if it is equal to, the investment’s life. E) exceeds the life of the investment.

96)

21

97) The discounted payback rule states that you should accept an investment project if its discounted payback period:

A) exceeds some pre-specified period of time. B) is less than some pre-specified period of time. C) is positive and rejected if it is negative. D) exceeds the life of the investment. E) is less than the payback period.

97)

98) If a project has a net present value equal to zero, then: A) the initial cost of the project exceeds the present value of the project’s subsequent

cash flows. B) the discount rate exceeds the internal rate of return. C) the internal rate of return exceeds the discount rate. D) the project produces cash inflows that exceed the minimum required inflows. E) any delay in receiving the projected cash inflows will cause the project’s NPV to

be negative.

98)

99) Net present value: A) is more useful than the internal rate of return when comparing different sized

projects. B) is not as widely used in practice as payback and discounted payback. C) cannot be used when deciding between two mutually exclusive projects. D) ignores the risk of a project. E) is rarely used by small firms according to the Graham and Harvey survey.

99)

100) Payback is frequently used to analyze independent projects because: A) it produces better decisions than those made using either NPV or IRR. B) it considers the time value of money. C) it is the most desirable of all the available analytical methods from a financial

perspective. D) it is easy and quick to calculate. E) all relevant cash flows are included in the analysis.

100)