Assignment:
Instructions: Capital Investment Selection
For your selected company, choose a capital investment project. For example, the company can adopt an electronic health records (EHR) system, a Vinci Surgical System, or a new MRI machine. For other ideas, search for technologies that hospitals have been adopting to keep competitive.
Map out the initial project cost and revenue stream due to the investment over the next 10 years using a time line. Consider factors such as cost of the equipment, volume/use of the equipment per year, net revenue from using the equipment, supply and labor costs. You will need to make several assumptions, so state your assumptions and whenever possible, cite your sources.
What are the non-financial benefits of adopting such a system? What impact, if any, will this investment have on your other business lines?
Reference: Gapenski, Louis (2012) Healthcare Finance. 5th edition