Justfication Report
Running Head: Justification for capital purchase
Ethel Sloan
Professor Tiriza York
Grand Canyon University
Date: April 27, 2012
Justification for Capital Purchase
Letter Purchase
Date: April 26, 2012
To: Allan Smith Company Management
From: Ethel Sloan
Subject: Letter for Justification for investment over $100.000
Based on my staff cost analysis I want to purchase an Electroencephalogram system which is a essential piece of equipment in the medical field. It is an essential tool in diagnostic imagining department. I can justify this piece of equipment will provide Return on investment as well good quality service.
However, in my current research I came across two vendors that gave me intriguing quotes on two different Electroencephalogram machines. Vendor one is GE. One Cadwell Easy 2 built in 2012 Electroencephalogram system includes 32 channel amplifier, phobic stimulator, and power com module, inter-connecting manual and a 1 year warranty. For a 10 years investment for 20 years if I choose this piece of equipment it will allow the department to increase their Return on investment by 20 % daily this medical equipment has limited capabilities, (mfimedical.com 2012).
ROI (gain of investment investment). - total cost of
= (200,00-120,00) 120,00
=80,000 /120,000
=0.6667=66.67%.
Vendor two current search was with a compumedics vendor. This piece of equipment comes with 1 year warranty, and a 10 year investment for 20 years also. If I choose this piece of equipment it will allow the department to increase their ROI also by 20% daily, compumedics piece of medical equipment having more capabilities than cadwell piece of equipment. Medical equipment is going for same price as Caldwell (mfimedical.com 2012).
ROI (gain of investment investment). - total cost of
= (200,00-120,00) 120,00
=80,000 /120,000
=0.6667=66.67%.
In return, the Caldwell equipment is only
Ethel Sloan
Professor Tiriza York
Grand Canyon University
Date: April 27, 2012
Justification for Capital Purchase
Letter Purchase
Date: April 26, 2012
To: Allan Smith Company Management
From: Ethel Sloan
Subject: Letter for Justification for investment over $100.000
Based on my staff cost analysis I want to purchase an Electroencephalogram system which is a essential piece of equipment in the medical field. It is an essential tool in diagnostic imagining department. I can justify this piece of equipment will provide Return on investment as well good quality service.
However, in my current research I came across two vendors that gave me intriguing quotes on two different Electroencephalogram machines. Vendor one is GE. One Cadwell Easy 2 built in 2012 Electroencephalogram system includes 32 channel amplifier, phobic stimulator, and power com module, inter-connecting manual and a 1 year warranty. For a 10 years investment for 20 years if I choose this piece of equipment it will allow the department to increase their Return on investment by 20 % daily this medical equipment has limited capabilities, (mfimedical.com 2012).
ROI (gain of investment investment). - total cost of
= (200,00-120,00) 120,00
=80,000 /120,000
=0.6667=66.67%.
Vendor two current search was with a compumedics vendor. This piece of equipment comes with 1 year warranty, and a 10 year investment for 20 years also. If I choose this piece of equipment it will allow the department to increase their ROI also by 20% daily, compumedics piece of medical equipment having more capabilities than cadwell piece of equipment. Medical equipment is going for same price as Caldwell (mfimedical.com 2012).
ROI (gain of investment investment). - total cost of
= (200,00-120,00) 120,00
=80,000 /120,000
=0.6667=66.67%.
In return, the Caldwell equipment is only
References: Cleverly, W. O., Song, P.H., & Cleverly, J.O. (2011). The Essentials of health care Finance (7th ed.). Sudbury, MA: Jones & Bartlett www.mfimedical.com/cadwell (2011).