Time Value of Money

 You are the Chief Financial Officer (CFO) at a home health organization. The average age of patients receiving home heath visits is over 65. You are preparing to meet with the Chief Executive Officer (CEO) to discuss an investment of funds with a potentially high pay-off. The bank is offering a 15% interest rate compounded annually on principal investments of $1,000,000; however, after the 1st year, the rate is subject to change. The drawback is your company is struggling to turn a profit because of the recent cuts in government reimbursement for Medicare patients. Prepare a two page analysis (excluding cover page and references) describing the time value of money and the expected payment if the company does not withdraw the funds before five years. Plan your rebuttal if the CEO challenges you because the interest rate is not guaranteed after the 1st year. Refer to APA 6th edition manual for proper formatting. Use 1” margins and double spacing in your essay.