Case Study: Rationing Available Capital

Running head: CASE STUDY: RATIONING AVAILABLE CAPITAL
Case Study: Rationing Available Capital
Name of the Student
Name of the University
Authors Note

1CASE STUDY: RATIONING AVAILABLE CAPITAL
Table of Contents
Introduction................................................................................................................................2
Identification of process of capital investment decision making...............................................2
Steps in determining the funding...............................................................................................3
Assessment.................................................................................................................................3
Comparison and contrast of both options...................................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................6
List of Appendix........................................................................................................................7

2CASE STUDY: RATIONING AVAILABLE CAPITAL
Introduction
The given case study is related to a proposal for approving and allocating the
necessary funds required for a large hospital in Riyadh. The two options are identified in
form of providing the cost information for a major five-story parking structure or expansion
of the operating room and including the addition of robotic surgical assisting devices. The
present proposal aims to identify the funding which will be required for the present year and
following. The main tool used for the assessment of the feasibility of the financial plan has
been considered with the application of capital investing tool NPV (Saleem, 2017).
Identification of process of capital investment decision making
The capital investing decisions are often considered with capital budgeting. The
important considerations of the investments decisions are mainly considered with allotting
the capital investment funds in the most effective manner for ensuring the best possible
returns. It needs to be seen that the cost considerations for the expansion of the operation
facility needs to be identified in terms of X-Ray Film processor table top, Ultrasound
machines, Gastroscope, Colonoscope (With halogen light source), Operating Table(hydraulic
driven), Anaesthesia trolley and Syringe pump. In addition to this, the personnel plan has
been prepared according to the requirement of the relevant staff who are needed for the
overall expansion of the facility. These includes Doctors, Nurses, Occupational therapists and
physiotherapists, Paramedics, Pharmacists and Volunteers. The cost consideration for the
new parking facility has been taken into consideration with Security Fees, Register for Tax,
Permits and Licenses, Site Survey, Paving, In and Out Gates, Website cost and Business
Insurance. Furthermore, the costs associated to the personnel selection needs to be taken into
consideration as per the Cleaning Staff and Parking Assist. The assessment of the project
needs to be taken into consideration as per appropriate and right capital investment decision.

3CASE STUDY: RATIONING AVAILABLE CAPITAL
For instance, there are few number of companies which look forward to the long-term
growth. The regulation of the capital investment decisions permits is seen to enable an
individual to ensure that the resources are allocated on an appropriate basis. The decisions
pertaining to the capital investments are mainly controlled and regulated as per organization’s
internal resources. The important form of the considerations for the expansion options has
been taken into account with the creating a feasible financial plan and for two years (Afriyie-
Darkwa, 2017).
Steps in determining the funding
The main steps in determining the funding in both the projects has been taken into
account with preparation of a sales forecast, cash flow forecast, cash flows, cash outflows,
depreciation schedule and profit and loss forecast. The next step is followed with suggesting
the highlights for growth in two years. The third stage of the projects is depicted with
formulating an upgrade plan for the business. This process is further proceeded with the
preparation of balance sheet. The fifth stage of the funding is determined with the preparation
of personnel for both the considerations. The last process is included with the application of
capital budgeting technique for the business.
Assessment
The main tool used for assessment of the cost targets project is depicted with
experience procedure. The study has focused on secondary resources about the growth
potential of parking facility and hospital. This is depicted to be conducive in understanding
the appropriate requirement of both the financial requirement and growth potentials of the
projects.