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Use the Following to Answer the Following Questions

question 63

Multiple Choice

Use the following to answer the following questions.
In the process of long-range planning at Rocky Mountain Hospital, Health Information Services defined its future business opportunities. A commitment was made to an optical imaging system and service to be implemented at the first of the year. The system would have the capacity for serving physician offices through a space rental and service program in addition to meeting the needs of the department. It was estimated by the health information manager that the hardware and software components of the optical imaging system would cost approximately $100,000 (with an estimated useful life of 5 years) , and a 3-year lease for one van (with a useful life of 5 years) would cost $7000 annually. The goal was to service 100 offices the first year, 200 offices the second year, and 300 offices the third and successive years at $150 a month. The accounting department uses straight line depreciation, that is, equal amounts of depreciation expenses are recognized for each year the asset is assumed to be used.
-In addition, the Capital Expenditure Committee will examine the _______ to objectively determine whether the benefits to be received from the optical imaging system are the best alternative use of the organization's investment funds.

Definitions:

Free Trade Advocates

Individuals or groups who support the removal of trade barriers between countries to facilitate the exchange of goods and services.

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his book "The Wealth of Nations," which laid the foundations for classical economics and modern capitalism.

White Volunteer

An individual of European descent who offers their service or work for free, often in the context of military or community service.

Born Free

Individuals who were born into freedom, not under the conditions of slavery or servitude.