Capital Budgeting Justification (110 points)
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Capital Budgeting Justification (110 points)
Capital budgeting is an essential process for healthcare organizations. The challenge in quality and patient safety organizations is proving return on the capital investment without revenue impacts.
Select a capital investment that you would recommend making for a patient safety concern. In a 10-12 slide PowerPoint Presentation address the following requirements:
Describe the capital item in detail:
Item description
Rationale for selection
- Cost-benefit analysis
Complete a capital budget with projected financial benefit:
- Revenue or positive financial impact
- Capital equipment cost
- Personnel cost
Supply cost
- Review financial ratios
Return on investment
- Net Present Value
- Cash Payback period
- Make a recommendation to lease or finance the capital item. Please support your decision with financial data.
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