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rgb02a, Bachelor's Degree
Category: Essays
Satisfied Customers: 40
Experience:  CPA that enjoys writing and reading
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Provide an example of a health care capital expenditure and

Customer Question

Provide an example of a health care capital expenditure and answer the following questions:

1. Why is the capital expenditure budgeting process important?
2. What concepts should be considered when evaluating a capital expenditure?
3. What do you feel is the most important factor when considering a capital expenditure proposal?

This is due by 11 pm pacific time, 150 word minimum.
Submitted: 4 years ago.
Category: Essays
Expert:  Mr. Gregory White replied 4 years ago.
Hello, my name is XXXXX XXXXX I am happy to help with your prompt.

I will have this posted before your stated deadline tonight.

Customer: replied 4 years ago.

is my assignment going to be done by 11?


Customer: replied 4 years ago.

Relist: Answer came too late. I gave a clear deadline and asked about an answer an hour before it was due and still no response. This person has backed out of another assignment of mine at the last minute and it is very upsetting.There is only 10 minutes left and I would have like to have received a responce in advance if he was not going to answer my question.


I have less than an hour for this assignmnet to be turned in can any one please help me?

Expert:  rgb02a replied 4 years ago.
An example of a health care capital expenditure would be the purchase of a new MRI machine. A new machine might cost between $1 million to $3 million with additional construction costs required. Another example might be adding or enhancing an ICU (Intensive Care Unit) for a hospital.

1. The capital expenditure budgeting process is important for several reasons. First, it helps to monitor the growth of an organization and keep it growing at a pace that does not add unnecessary risk to the organization. Cash and access to capital is critical for any organization to survive. Second, it allows management to prioritize goals and pursue intentional growth that will benefit customers, shareholders (if a for-profit), and even society. Without proper planning, a project could get started and not be able to be completed. Thus, it would not bring additional revenue and is benefiting no one.

2. Break even analysis (determining when the project costs will be recovered by new revenue) and projecting rates of return (comparing incremental operating costs to additional revenue and accounting for time) are important concepts to consider in the process. Ongoing maintenance requirements for the project are important, as well. How the capital expenditure fit the goals of the organization is critical.

3. I feel that the most important item to consider in the capital expenditure evaluation process would be making sure that adequate capital is available to complete the project. No matter how noble or necessary the project, if it is not completed it benefits no one. As the old saying goes, "cash is king."

I hope this helps. I am sorry that your assignment was spoken for and opted out of at the last minute. Hopefully you are able to still get some credit. Let me know if I can help you in the future. Thanks.
Expert:  rgb02a replied 4 years ago.
Did this help or did you need additional information or help? Please let me know if I can help you further or accept the answer if it is what you needed and you were able to turn in the assignment late. Thanks!

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