1DISCUSSION Response to Brett Abram Dear Brett, I read your post and appreciate the choice of the MRI machine as made by you. The machine is defined as a capital cost because it is expensive and will be used for the long term business enhancement. In addition to this, you have also mentioned that there are several maintenance costs associated with it. However, I believe that along with the different maintenance costs, there also exists costs of the spare parts. Very often the machines break down and then in addition to the maintenance costs there also exists certain repair costs which are very high in nature. Hence, I recommend you to add these costs in your discussion. Thank you. Response to Aisha Gardner Dear Aisha, I read your post and appreciate your choice of machine. The X-ray machine definitely forms a crucial part of any hospital and allows the different doctors to analyze the health of the patient without undergoing any surgeries and it is in fact a costly machine. However, I would like to state that, one aspect that you did not mention in your post is the manner in which the X-ray machine builds up the earning capacity of the business in the hospital. You have rightfully mentioned that the costly machines need to be capitalized by the hospitals but then, the capital expenditures can also be stated as those, whose impact on the business is long term and that, it increases the capacity of the business. Moreover, you missed out on its maintenance costs as well. I would recommend you to kindly include the reasons stated above. Thank you
2DISCUSSION References and Bibliography Andor, G., Mohanty, S. K., & Toth, T. (2015). Capital budgeting practices: A survey of Central and Eastern European firms.Emerging Markets Review,23, 148-172. Burns, R., & Walker, J. (2015). Capital budgeting surveys: the future is now.