HCA312_WK4_A2_Quintero - Running head CAPITAL EXPENDITURE...

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Running head: CAPITAL EXPENDITURE PROPOSAL 1 Capital Expenditure Proposal Joseph Quintero HCA 312 Health Care Finance Instructor Margaret McGannon April 25, 2016
CAPITAL EXPENDITURE PROPOSAL 2 Key Strategic Goals The success of a capital investment is respectfully gauged by the key strategic goals set forth to achieve potential growth outcomes. One of the most intrinsic elements of a capital investment proposal is the source of project financing. Funding sources in the healthcare system vary by the magnitude of the project and in some cases the type of project. That said project funding requires creative financial development and design that reflects current market conditions in order to ensure designated cost allocations are accurately represented. Therefore, to reduce the risk of an individual investment, “the risks and returns among the assets of the project must be very different” (Smith, 2014). In considering a capital investment proposal to add diagnostic imaging equipment to the healthcare system, it is pertinent to recognize the potential return of the income generating investment. With that in mind, this literature will discuss potential funding sources that will support a smart path investment strategy. A smart path investment strategy analyzes funding sources that could reduce capital investments costs for a revenue-generating project (Jury, 2012).

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