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 the two and discuss why each is important.

The most important factor to be considered when making a capital budget is financial. The financial factors include the evaluation of economic feasibility and cost-benefit analysis. Also, they analyze available resources for funding the project. This type of analysis helps organizations decide if they have enough funds to support an initiative.

Capital budget decisions can be influenced by emotions. People can use emotions to motivate them to put their money, time and resources in projects. These may not always be financially feasible but provide immeasurable benefits for people affected by specific issues. An organization may decide to invest in philanthropic projects that have little potential to turn a profit, but choose to continue the project due to its potential to help others or raise awareness on a topic.

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 . These two elements must be weighed together in order to make an informed decision about the future of projects.

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