Capital budgeting process : Why are capital costs such an important aspect of a healthcare organization’s costs?What two categories are capital expenditure budgets divided into? Provide real-world examples of both these categories?

Capital budgeting process

1. Why are capital costs such an important aspect of a healthcare organization’s costs?

2. What two categories are capital expenditure budgets divided into? Provide real-world examples of both these categories?

3. Briefly explain the five steps involved in the capital budgeting process.

4. What are the three methods of financial analysis for capital expenditures? What are the formulas for each? Which of these is the least sophisticated? Why?

5. Explain what led to an increase in debt financing. What result did the two policies have on healthcare organizations?

6. What factors do rating agencies look at when issuing bond ratings?