1) What would each of the clinics be worth to an outside buyer (using the guideline of 10 times annual profits)? What would each of the clinics be worth to each other? 2) A hospital anticipates that spending $100,000 on an advertising campaign will increase bed-days by 1,000

Economics Nov 21, 2020

1) What would each of the clinics be worth to an outside buyer (using the guideline of 10 times annual profits)? What would each of the clinics be worth to each other?

2) A hospital anticipates that spending $100,000 on an advertising campaign will increase bed-days by 1,000. The marketing department anticipates that each additional bed-day will yield $2,000 in additional revenue and will increase costs by $1,200. Should the hospital proceed with the advertising campaign?