After working in a Psychological Hospital, processing the insurance billing for over a year, Robert was asked to give some additional help to a medical assistant working in another area of the hospital.   While chatting with some of the staff in the office, Robert couldn’t help but notice a change in their behavior when Dr. Salazar came into the office. They seemed to have a level of disrespect and businesslike manner towards the Doctor. Their demeanor countered their previous playful bantering exhibited toward the other doctors who had come into the office earlier.

Robert watched as Dr. Salazar ordered one of his nurses to find all of his patients and have them stand against the wall outside of his small intake room. Robert noticed that Dr. Salazar spent between 5 to 7 minutes with each patient, herding them in and out of the tiny room, with little disregard to their concerns or their requests to discuss their issues with him further. Dr. Salazar had managed to see all of his patients, make notes and write scripts within an hour. After he left, Robert overheard the nurses gossiping about how Dr. Salazar was the “candy man” because he handed out medications like it was candy, and then billed the insurance company for 45 minutes for each patient.

What is Robert legally supposed to do with this information about Dr. Salazar, if any?

Has there been a violation legally or ethically? If so, what?

If Dr. Salazar’s actions are called into question and Robert does not speak up, can he be held liable? Why or why not?

Assume you are offered an investment that will pay you $3,000 at time 0. For year 1 the

cash inflow will be $1,000 and then will decline at a rate of 20% per year for 30 years, that is,

each year after year 1 will be 80% of the prior year through 30 years. If the required rate of

return is 14%, what is the value of this stream of cash flows, including the value received today?

Use equations or HP 10bll+ to answer. Do not use Excel.

Today, you begin to receive payments of equal amounts at the beginning of each year for 10 years (including the payment you receive today). Assume the appropriate discount rate is 3%. If the present value of this series of payments is $40,000, what must be the amount of each payment?

Assume the appropriate discount rate is 4%. You will receive a payment every year for the next 17 years, which will grow at 3% annually. The amount of the first payment will be $2,000. What is the current value of this series of payments?

Assume the appropriate discount rate is 7%. You will receive a payment every year for the next 14 years, which will grow at 3% annually. The amount of the first payment will be $5,000. What is the current value of this series of payments?

Assume the appropriate discount rate is 5%. You will receive a payment every year for the next 16 years, which will grow at 4% annually. The amount of the first payment will be $3,000. What is the current value of this series of payments?

Assume the appropriate discount rate is 8%. You will receive a payment every year for the next 13 years, which will grow at 4% annually. The amount of the first payment will be $6,000. What is the current value of this series of payments?