A physician hopes to advocate for a new medical records system that he believes will save his department money. He has a good idea of the money that can be saved each year, and has received several quotes from vendors for the project. He expects the system to last 10 years. What further information does the physician need to make a good financial case to the hospital?

Select one:

a.

While he has collected most of the financial information required, he still needs to determine the interest rate that will be used for financial analysis.

b.

He does not have a clear understanding of the future cash inflows that this project will generate, which is needed for an NPV analysis.

c.

He has enough information to evaluate the investment, but must also consider the nonfinancial implications of the decision.

d.

He has all the data needed to calculate the remaining variable in the annuity equation - present value.