Abstract: Health businesses are needed by everyone and quite profitable because of the many who need health services such as the need for general practitioner services, specialist doctors, many also require the services of nurse midwives and pharmacists as well as other professions. Referring to the ever increasing number of births which according to BPS data can reach 5 million people per year (2015) then of course the business of birth is interesting enough to run in the form of maternity clinics and maternity hospitals. Complete and detailed business planning needs to be done on the operational process, the need for labor to the need to conduct marketing to the clinic when first operating. All of these ultimately require financial budgets in the form of initial investment capital for land and buildings, investment in equipment associated with marketing targets. Commonly used investment valuation methods include Payback period, Return of investment, Net present value, and Internal rate of return. Payback period shows how long (several years) the return on investment of a business project by comparing the initial investment or initial investment with annual cash flow. Common mistake in ROI analysis is comparing the initial investment, which is always in cash, with returns as measured by profit or (in some cases) revenue. Net present value is the present value of the cash flows at the required rate of return of your project compared to your initial investment. If the NPV is negative, the project is not a good one and if it’s positive, the project should be accepted.

Keywords: Roi, NPV, Payback period, Investment

PDF | DOI: 10.17148/IARJSET.2018.5714

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