Justfication Report

Only available on StudyMode
  • Download(s) : 79
  • Published : May 10, 2013
Open Document
Text Preview

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...
tracking img