MEMORANDUM

TO: ADAM BROWN, RADIOLOGY DIRECTOR

FROM: PAULA THOMAS, CFO

SUBJECT: CAPITAL BUDGET

DATE: XX/XX/XXXX

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I need your assistance in preparing the capital budget for the hospital. It is my understanding that the CAT scanner needs replacement during the next fiscal year. Please explain, via return memo

Question:

1. The financial analysis you have conducted to determine the viability of the replacement project.

3. Explain how cash flow analysis and breakeven analysis affect this decision.