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HS440 Unit 9 discussion 2 and 3

On two separate paragraph of 250 words each give your personal opinion to  Genesis Mariano and  Daron NewtonGenesis Mariano“Capital investment analysis is a budgeting procedure that companies and government agencies use to assess the potential profitability of a long-term investment” (Kenton, 2018, para. 1). The goal of its process is identifying the best option that yields the highest return on invested capital. Cash flow estimation is a step used short term forecasting to determine how someone or a business is going to get money for a project and how they are going to pay for the expense. Cash inflow comes from financing, operations, and investing while cash outflow is a result from expenses. “Risk Analysis and Management is a key project management practice to ensure that the least number of surprises occur while your project is underway” (Lavanya, 2008, para.1). By applying a streamlined risk management process, it has the potential to alleviate any uncertainties and minimizes any occurrence or impact of anything negative that could happen. “Cost of capital refers to the opportunity cost of making a specific investment. It is the rate of return that could have been earned by putting the same money into a different investment with equal risk. Thus, the cost of capital is the rate of return required to persuade the investor to make a given investment” (Investing Answers, 2019, para. 1).Like any other business, capital investment financial analysis is an effective way in creating a successful business including the health care field. Healthcare managers can analyze what certain equipment or the need for more staffing or to reduce staff and any other investment that they can benefit from. Having the maximum potential profitability in a long-term investment.ReferencesInvesting Answers. (2019). Cost of Capital. Retrieved February 6, 2019, from https://investinganswers.com/financial-dictionary/stock-valuation/cost-capital-112Kenton, W. (2018, March 9). Capital Investment Analysis. Retrieved February 6, 2019, from https://www.investopedia.com/terms/c/capital-investment-analysis.aspLavanya, N. (2008, March 3). Risk analysis and management. Retrieved February 6, 2019, from https://www.pmi.org/learning/library/risk-analysis-project-management-7070Daron NewtonCapital investments are the funds that an organization’s uses to further their business objectives when it comes to the financial side of the business (Gapenski, ). As managers seek to improve the financial status of an organization. very important decisions have to be made when it comes to capital investing. Some tools that can be quite helpful to the managers are things such as financial analysis, which let a manager asses the viability, stability, and profitability of the business (Gapenski, ). Then you have cash flow forecast allow the manager to also look at the amount of cash that is flowing in and out of the business. There has to be a steady positive cash flow in order to have the funds available to make those capital investments. A manager also has to account for any risk that may be associated with making an investment. Lastly, the cost of capital investment deals with a manager taking an in-depth look to make sure that the cost of capital does not exceed the return of the investment. In order for a manager to make a sound and wise decision. These tools must be evaluated.According to Accounting tools, when decisions are being made by managers they have to ensure that the investment fits into the long term plans of the business and that the capital investment will create a positive return on the investment (Accounting Tools, 2018). So as you can see, a manager can be faced with many challenges when it comes to capital investments, but if the due diligence is done. It can result in financial prosperity for the organization.V/r,DaronReferences(Accounting Tools). (2018). Capital Investment Decisions. Reterived from https://www.accountingtools.com/articles/capital-investment-decisions.htmlGapenski, L. C. (2012). Healthcare Finance: An Introduction to Accounting and Financial Management (Vol. 5th ed). Chicago, Ill: Health Administration Press. Retrieved from http://search.ebscohost.com.libauth.purdueglobal.edu/login.aspx?direct=true&db=nlebk&AN=516239&site=eds-live

 
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