You are the chief financial officer (CFO) for a healthcare organization and need to discuss with fellow C-suite executives that cost cutting is not the only answer to profitability. Prepare for the next managers meeting by responding to the following prompts:
-Analyze financial principles that affect the budgeting process such as time value of money, capital budgeting, risk and return, investment decision analysis and lease valuation.
-Explain how a capital budget and a return on investment contribute to sustainable growth.
-Clarify the role that risk analysis plays during capital investment decision making.