Capital Budgeting

Note: The Instructor will post the document for this Assignment by Day 1 of Week 10.

There are many options to buy capital, including cash purchases, loans, leasing, and other forms of payment. Your goal as a health care manager is to determine which method is best for your organization, given its financial and organizational structure (i.e., for-profit or not-for-profit). Time value of money and net present value are two techniques that may help you determine how and when to invest in new capital. For this Assignment, you examine these concepts as they pertain to the health care industry.

To prepare for this Assignment:

Review the Week 10 Assignment document provided to you by the Instructor. Reflect on concepts of time value of money, net present value, internal rate of return, and purchasing options.

Note: This Assignment will be graded using this rubric: Document: Week 10 Assignment Rubric (Word document)

The Assignment:

Using the “Week 10 Assignment Capital Budget Excel Template” answer the questions provided in the week 10 assignment document.