HS440 Unit 9 Discussion

Capital Budgeting

In preparation for your Unit 9 Quiz, discuss three steps in the capital investment financial analysis: cash flow estimation, project risk assessment, and cost of capital estimation. How might each of these influence a health care manager’s decision to move forward with an investment decision?

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SMART ANSWER

Three steps that are involved in the capital investment financial analysis are cash flow estimation, project risk assessment, and cost of capital estimation, all of these can influence how a health care manager make decisions about future investments and view forecasted profits.