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Certified Healthcare Financial Professional (CHFP) Questions 121–125 (page: 26)

Updated On: 9-Feb-2026

Cash flows that have been adjusted to account for the cost of capital are called:

  1. Cost adjusted cash flows
  2. Capital cash flows
  3. Cash Investment flows
  4. Discounted cash flows

Answer(s): D



The rate of return required undertaking a project; the cost of capital accounts for both the time value of money and risk refers to:

  1. Cost of return
  2. Cost of capital
  3. Cost of risk
  4. Cost of revenue

Answer(s): B



Which of the following is NOT the step used to calculate the Net present value (NPV) of the satellite clinic alternative?

  1. Determine revenues and expenses
  2. Add (subtract) any non-annual cash flows
  3. Project incremental cash flows
  4. Adjust for working capital

Answer(s): C



should not be included as a cash flow because it is part of financing flows and is included in the discount rate.

  1. Capital expense
  2. Interest expense
  3. Investment expense
  4. Finance expense

Answer(s): B



Salvage value is:

  1. the amount of credit to be received when an asset is sold, usually at the mid of its useful life.
  2. the amount of credit to be paid when an asset is purchased, usually at the end of its useful life.
  3. the amount of cash to be paid when an asset is purchased, usually at the mid of its useful life.
  4. the amount of cash to be received when an asset is sold, usually at the end of its useful life.

Answer(s): D



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