In this Discussion, you consider the impact of both financial and emotional factors in making a capital budget decision,

Finance and economics in health care delivery – discussion 6 (grading

Compare and contrast both and then explain the importance of each.

When making capital budget decisions, financial factors will be the first thing that is considered. The financial considerations are assessing the economic feasibility of a project, performing cost-benefit analysis, analysing available resources to finance a purchase or if acquiring specialized equipment is required, and analyzing potential returns on investment. This type of analysis helps organizations decide if they are able to fund and resource an initiative.

Also, emotional factors play a role in the capital budget decision-making process. Emotions are powerful motivators for people who invest time, money and resources in projects which may not necessarily be economically viable but provide immeasurable value to those affected by certain problems or promote growth within an organisation. An organization may decide to undertake a project that has little or no chance of making a profit, but is still motivated to do so because it can help others who are in need and raise awareness on certain topics.

Both financial & emotional factors should be taken into account when making a capital budget decision because they each have their own merits & drawbacks depending on situation being examined & ultimately influence whether an initiative succeeds or fails . While financial constraints provide practicality & reduce risk associated w/certain investments , strong emotions often act as key motivators that lead individuals groups towards achieving greater goals than originally thought possible due passion commitment associated w/these causes . It is important to weigh both factors carefully in order to make an informed decision about projects.