Explain how a capital budget and a return on investment

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You are the chief financial officer (CFO) for an organization and need to discuss with fellow C-suite executives that cost cutting is not the only answer to profitability.

Prepare for the next manager's meeting by responding to the following prompts:

Explain how a capital budget and a return on investment contribute to sustainable growth.

Clarify the role that risk analysis plays during capital investment decision making.

Provide 1 reference that discusses cost containment and patient care.

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The paper is in relation to the analysis of the other factors and business decisions that helps in the contribution of increasing profitability of the company rather than mere cost cutting. Capital budgeting analysis along with effective return on investment helps the company in moving towards sustainable growth. The risks associated with the capital budgeting always exists which cannot be eliminated but steps for reducing the same can be adopted.

Reference no: EM132314657

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