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Why are capital costs such an important aspect of a healthcare organization's costs? What two categories are capital expenditure budgets divided into? Provide real- world

  1. Why are capital costs such an important aspect of a healthcare organization's costs?
  2. What two categories are capital expenditure budgets divided into? Provide real- world examples of both of these categories.
  3. Briefly explain the five steps involved in the capital budgeting process.
  4. What are the three methods of financial analysis for capital expenditures? What are the formulas for each? Which of these three is the least sophisticated? Why?

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