The document discusses recommending whether a hospital should purchase a new MRI machine. Key factors to consider include the types of patients and care that will be provided, the assembled team, and the financial analysis which guides the purchase decision. The goal is to provide a 2-minute elevator pitch to the CEO to persuade them on the recommendation. The pitch should reference the cash flow analysis which shows the system and installation costs of $2.5 million, projected revenues and costs over 5 years, and a positive net present value and internal rate of return indicating the purchase is financially worthwhile.

1. 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

2. 5
System cost
($2,000,000)
Installation expenses
(500,000)
Total Cost
($2,500,000)
Net revenues
$750,000
$787,500
$826,875
$868,219
$911,630

3. Labor costs
(60,000)
(63,000)
(66,150)
(69,457)
(72,930)
Maintenance cost
(150,000)
(157,000)
(165, 375)
(173,644)
(182,326)
Supplies
(30,000)
(31,500)
(33,075)

4. (34,729)
(36,465)
Net operating income
$510,000
$535,500
$562,275
$590,389
$619,908
Salvage value
750,000
Net cash flow
($2,500,000)
$510,000
$535,500
$562,275

5. $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.