Assignment 4.3: Memo to Big Sky Health System's Board of

Directors

Through this exercise, you will analyze and evaluate the various financial methods for evaluating capital

projects as well as communicate the recommendations to the organization's board of directors and provide

direction as to the course of action the board should pursue.

Word Count: 250 words maximum

The communication of the recommendation to the board of directors is critical to provide the opportunity to explain the basis for the recommendation as well as the rationale as to why this recommendation represents the appropriate course of action for the board. This culminates the capital budget process and generates the decision-making that supports the recommendation.

Review your answers to problem 14.6. Write a brief memo to the board of directors for Big Sky Health Systems Inc. explaining the results of your calculations regarding the new service. Is the new service financially viable? What recommendations would you make to the board regarding this service? Would the recommendation be the same if there was an opportunity cost involved of $15,000 (total) in today's dollars obtained by renting the space involved in the new service to an outside entity for 3 years? Why or why not?

You should reference appropriate supporting documentation, such as calculations from your other assignment, but you need not

reproduce the calculations in their entirety

All sources, including course materials, must be cited in text in APA style. If necessary, see the MHA program definition of outside and peer-reviewed sources in MHA Information and Resources. Using the MHA adaptation of APA citation, your reference page will contain only your outside sources.

Submitting your assignment

When you are ready to submit your assignment, click on Week Four under Course Weeks. Then, scroll down for the links under this

week's assignments and click on the link named Assignment 4.3. Follow the instructions given there to submit the assignment.

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