For this assignment, you are considering the purchase of a new MRI machine for Bayside Memorial Hospital. Think about what types of patients you will see, what types of care you will provide, and the team members you have assembled. Remember, the financial analysis provides much of the guidelines for all decision making in the purchase decision. Your goal will be to provide a 2-minute elevator pitch of your recommendation to the organization’s CEO and to persuade them toward your point of view.

Instructions

Using the chart of cash revenues and costs, read and understand the cash flow analysis results. Then provide your decision on whether to make the purchase or not. You will frame this recommendation in a 2-minute pitch to your boss, the CEO of the organization. Record your 2-minute pitch as an audio recording and be persuasive, providing solid evidence for your conclusion on whether to purchase the equipment or not.

Cash Revenues and Costs:

0

1

2

3

4

5

1. System cost

($2,000,000)

1. Installation expenses

(500,000)

1. Total Cost

($2,500,000)

1. Net revenues

$750,000

$787,500

$826,875

$868,219

$911,630

1. Labor costs

(60,000)

(63,000)

(66,150)

(69,457)

(72,930)

1. Maintenance cost

(150,000)

(157,000)

(165, 375)

(173,644)

(182,326)

1. Supplies

(30,000)

(31,500)

(33,075)

(34,729)

(36,465)

1. Net operating income

$510,000

$535,500

$562,275

$590,389

$619,908

1. Salvage value

750,000

1. Net cash flow

($2,500,000)

$510,000

$535,500

$562,275

$590,389

$1,369,908

Profitability Measures:

Net present value: $82,493

Internal rate of return = 11.1%

Recording:

Options to record include (but are not limited to) your computer (PC or Mac), Screencastify, which is a free add-on to Chrome, Zoom, or using an app of your choice on a smartphone or tablet.

Submit your recording link or file to the Dropbox along with your APA formatted references you used to support your oral presentation.