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Running head: CAPITAL INVESTMENT DECISIONS 1
Capital Investment Decisions
Students Name
University Affiliation

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CAPITAL INVESTMENT DECISIONS 2
Capital Investment Decisions
Introduction
Capital investment decisions are the core principles met to fund different projects in
an organization. The base of the investment decisions made is to enhance furthering of the
business objectives, goals and the focus (Northcott, 2013). For a hospital project, it is
important to categorize the project classification and know what investment decisions to
make for the health care facility. The financial investments of a hospital may be in the form
of fixed assets necessary for the facility to deliver better services to the patients in the
institution and their guardians who take care of them.
Health care facilities need to invest in a sound financial system that should be
automatic in updating the health care costs of every patient without omission of any kind
(Jenny, 2014). When the financial system is updated to the most recent price, it becomes easy
for the hospital finance staff to serve the customers fast and efficiently. The health institution
also has an advantage for it does not register losses in the banking sector of the organization.
Investing in a qualified health insurance for the clients and the hospital will cost the
healthcare facilities a significant amount of cash which might take a long time to repay the
cost of installation. The capital used will finance long life assets that are very costly to install
them and have them running initially. Therefore, the money invested needs not to be cash for
short-term goals such as purchase or acquisition of pharmaceuticals, but it would rather be
from a bank loan (Lang, 2012). Banks assist investors in making long term goals achievable
within a short time with a cost of interest added to the actual cost of installation which
becomes debt in the financial institutions that are paid over time. The investment on a good
insurance policy is useful to the customer and the hospital for, in the long run, it proves to be
of help to all the parties involved.

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Running head: CAPITAL INVESTMENT DECISIONS Capital Investment Decisions Student’s Name University Affiliation 1 CAPITAL INVESTMENT DECISIONS 2 Capital Investment Decisions Introduction Capital investment decisions are the core principles met to fund different projects in an organization. The base of the investment decisions made is to enhance furthering of the business objectives, goals and the focus (Northcott, 2013). For a hospital project, it is important to categorize the project classification and know what investment decisions to make for the health care facility. The financial investments of a hospital may be in the form of fixed assets necessary for the facility to deliver better services to the patients in the institution and their guardians who take care of them. Health care facilities need to invest in a sound financial system that should be automatic in updating the h ...
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