Finance For Health Care

• Bayside Memorial Hospital is considering purchasing a new MRI machine.

1. Based on the cash flow analysis on the attached doc. file below would you recommend that the healthcare facility, Bayside Memorial Hospital, purchase an MRI machine?

2. In your analysis please review the following concepts: incremental cash flow, sunk cost, opportunity cost, strategic value, inflation effects. (These are the assignment instructions, allowing students to master the key components of the rubric including :

i. Describe the key components of a financial plan define financial and strategic planning;

ii. explain the difference between a simple budget and a flexible budget;

iii. and describe the use of variance analysis in the budget creation process

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