MSN6216 Unit 9 Discussion Latest 2019 January

MSN6216 - Advanced Finance and Operations Management

Unit 9 Discussion

Return on Investment

Return on investment (ROI) is a common measure of the profitability of a capital project. Simply put, it is the ratio of benefits to costs. The benefit realized from the investment is divided by the cost of that investment. In this discussion, you will explore the concept of ROI from a personal perspective to illustrate how financial decision makers consider a major capital expenditure that you might propose.

The nursing profession is often viewed as a discipline that offers opportunities to grow and reap potential benefits or rewards for both the individual and the people to whom services are provided. In this context, the ROI could be viewed as a comparison of the time and expense nurses invest in continuing professional education and the benefits to patients that result from changes in an organizational culture more focused on safety, positive patient outcomes, or several other important aspects of health care.

Consider your role in your current practice setting:

Identify a major investment that you might make in your professional growth and development, for example, new technology or equipment, or perhaps further education of some type.

What might you expect as a fair return on your investment, on both a personal and professional level, that would justify the cost?

What criteria might a particular health care organization or service provider apply to evaluate the return on a capital investment?

Ensure that your discussion post is adequate in length by following the requirements for postings found in the Faculty Expectations Message (FEM). In addition, be sure to cite at least one source from the assigned readings or other professional and scholarly literature, as applicable, to support your position, substantiate a claim, or when referring to the ideas or work of others.

Response Guidelines

Read as many posts as time allows. Respond to the required number of peers and use the word count stated in the FEM, preferably responding to posts that have had few or no responses.Your responses are expected to be substantive in nature. You are encouraged to ask questions, elaborate on a particular point, offer an alternative viewpoint, or add comments that extend or sustain the dialog. Remember to cite your sources, as applicable.

As you contemplate your response, consider the following questions:

How does your idea of an acceptable return on investment compare to that of your colleague?

Can you offer any examples of ROI decisions that you have experience with, or knowledge of?

Learning Components

This activity will help you achieve the following learning components:

Determine a return on investment.

Determine the depreciation value of the capital assets, equipment, services, or goods.

Determine the time period for cost recovery.

Calculate costs.

Determine the benefits of a capital expenditure.

Apply the principles of effective composition.

Proofread and edit written communications.