Reference no: EM133202946 , Length: Word count: 3 Pages

Assignment Problem: This cost-benefit analysis assignment consists of two parts.

Part 1: Complete the Cost-Benefit Analysis Template for the purchase of an MRI machine for the clinic.

Part 2: Based on your cost-benefit analysis, write a 3-4 page double-spaced summary. Address all of the following in your summary:

1. Explain how the cost-benefit analysis aligns with organizational needs and future growth.     

In your explanation be sure to consider:       

• Non-monetary benefits, such as improved customer satisfaction, associated with the purchase.
• Non-monetary costs associated with the equipment purchase. For example, productivity may decrease initially as people adjust to new policies and procedures associated with using the MRI equipment. At the same time, productivity is likely to increase once people adjust to the new policies and procedures.
• Although these factors may be difficult to quantify, successful health care leaders are able to weigh nonmonetary and monetary considerations when making their purchasing and budgeting decisions.

2. Explain the concept of opportunity cost.

3. Recommend a plan of action consistent with your cost-benefit analysis.     

• Decide whether the clinic should purchase the MRI machine.
• Be sure to reference specific aspects of the cost-benefit analysis.

Your final submission needs to include:

1. The completed Cost-Benefit Analysis Template (Excel spreadsheet).

2. A concise summary that provides (Word document):     

• Context for the cost-benefit analysis.
• Rationale behind the recommendation.