MEMORANDUM

TO: BILL RIGHT, RADIOLOGY DIRECTOR

FROM: JEFF BROWN, CFO

SUBJECT: CAPITAL BUDGET

DATE: 06/30/12

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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 a return memo, the financial analysis that you have conducted in order to determine the viability of the replacement project. Be sure to explain how cash flow analysis and breakeven analysis affect this decision.