One capital investment my firm will need to secure financing for is the project of building a rehab center as an addition to the hospital. The center will help patients who have been critically ill or injured to readjust to everyday life. The project has an estimated cost of $23 million. As a manager, I would have many questions about my firm's financial health. What does my firm's financial health look like after the pandemic? Do we have enough staffing and the funds to support additional staffing? How much revenue will this rebab center generate for my firm? What type of financing is required for an investment like this? How much debt will this investment add? What is the goal return on investment? How long will it take my firm to reach that goal? Despite these questions, I believe capital investment would be a good idea for my firm. According to the Finance Storyteller (2018), time value of money is the idea that money that is available in the present time is worth more than the same amount in the future. This investment will yield a much greater profit than the $23 million put into the project. I also think this investment is a value for my firm because it fills a need in our community.

Resource

The Finance Storyteller. (2018, November 29). Time value of money explained [Video]. YouTube. https://www.youtube.com/watch?v=gkp-7yhfreg

Respond to your colleagues' posts in one or more of the following ways:

• Ask a question about the capital investment your colleague identified.
• Provide an additional question that your colleague might ask about the company's financial position before engaging in the investment, including a rationale for why they might ask it. Or, expand further on one of the questions they identified.
• Share an insight you gained from or offer an alternative perspective on your colleague's proposal of whether the capital investment would or would not be of value to their organization at this time.