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Working on a request to replace an older x-ray machine

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As the Regional Director for a California health care company, I was to approve all capital expenditures over $25,000. The director of the clinic and I had been working on a request to replace an older x-ray machine that was in nearly constant need of repair and was becoming outdated.

As part of our proposal/request for the new equipment we included a NPV that favored the purchase. In spite of our best efforts, our home office rejected the proposal and indicated we could try again in the new fiscal year – 6 months away.

Apparently the fates were in our favor because 2 weeks later as a procedure was to start a part of the x-ray machine broke off and nearly landed on the patient. It was lucky for the patient and us that no one got hurt.

Needless to say after the near mishap we got our new x-ray machine shortly thereafter.

The moral of the story: regardless of which calculation you use (NPV, IRR, PI, EVA, etc.) sometimes good fortune works better.

What are your thoughts? Elaborate/Explain

Reference no: EM131044760

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