Description
Cost-Benefit Analysis
One of the physicians in your office would like to purchase a piece of equipment. Your responsibility is to put together a CBA to present to the physicians to determine the best approach to take to this request. You may refer to the article "Cost-Benefit Analysis: A Template" and the spreadsheet "Writing a Cost-Benefit Analysis" by Plowman, regarding elements of a successful CBA. You may also use the spreadsheet to complete a capital purchase scenario. Your final submission should include the following:
- The completed CBA spreadsheet.
- A concise summary that provides context for the CBA, provides additional insights, and explains the rationale behind your recommendation. This summary should be 2–3 pages in length, not including the CBA spreadsheet, and follow APA standards. Be sure to cite the sources in APA format.
Explanation & Answer
Attached.
COST BENEFIT ANALYSIS FOR PURCHASING A CANCER SCREENING EQUIPMENT
Current Year (CY)
CY +1
CY +2
CY +3
Costs
Cost of equipment
Training costs
Repair & Maintenance
Electricity expense
Labor
Program costs
$
$
$
$
$
$
2.800.000,00
500.000,00
80.000,00
5.000,00
20.000,00
40.000,00
$
$
$
$
$
350.000,00
120.000,00
4.500,00
20.000,00
50.000,00
$
$
$
$
$
300.000,00
150.000,00
7.500,00
20.000,00
45.000,00
$
$
$
$
$
200.000,00
175.000,00
8.000,00
20.000,00
52.000,00
Total Costs (Future Value)
Total Costs (Present Value)
$
$
3.445.000,00
3.445.000,00
$
$
544.500,00
533.823,53
$
$
522.500,00
502.210,69
$
$
455.000,00
428.756,66
Benefits
Productivity
Increased reliabilty & durability
Quality care
Increased funding
$
$
$
$
340.000,00
250.000,00
106.000,00
350.000,00
$
$
$
$
470.000,00
300.000,00
124.000,00
500.000,00
$
$
$
$
420.000,00
210.000,00
145.600,00
700.000,00
$
$
$
$
510.000,00
282.000,00
167.000,00
620.000,00
Total Benefits (Future Value)
Total Benefits (Present Value)
$
$
1.046.000,00
1.046.000,00
$
$
1.394.000,00
1.366.666,67
Present Value Discout Rate
2%
$ 1.475.600,00
$ 1.418.300,65
$ 1.579.000,00
$ 1.487.926,97
T
CY +4
CY +5
$
$
$
$
$
150.000,00
190.000,00
10.000,00
20.000,00
31.000,...
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