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Capital replacements and upgrades in a particular year

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Everything in the hospital needs to be replaced. What a statement that is to make, but it is true! Every piece of equipment, every piece of furniture, every mechanical system, the hospital roof, the heating and air conditioning system. Even the hospital building itself eventually needs to be replaced. Of course, not all of that can be done in one year's budget. As a healthcare administrator, how will you determine how much money you can spend on capital replacements and upgrades in a particular year? Explain the three approaches to determining capital affordability.

Reference no: EM131413540

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