The focus of this week's short paper writing will be to consider the justification of the capital expenditure.Three key aspects should be considered: (1) Amount and type of expenditure (2) Attainment of key decision criteria (3) Detailed financial analysis.

Using pro-forma data taken from our outside reading "A Cost Benefit Analysis- Bardon, C. G., Wang, S. J., Middleton, B., Prosser, L. A., Spurr, C. D., Carchidi, P. J., et al. (2003). The American Journal of Medicine , 114.)"preparea net present value analysisby calculating ahurdle rateandprofitability indexfor your capital project. Do not consider capital cost reimbursement from third-party payers in your calculation.