You Have Submitted a Request to the Board of Directors

question 17

Essay

You have submitted a request to the board of directors to purchase a computer-based patient record system. The system is anticipated to save $45,000 in personnel operating costs each year for the next 3 years and will cost $110,000 to install. Operating and maintenance costs for the 3 years are estimated to be $5000 per year. The money to buy the equipment would come from an equipment fund, which is now earning 8%. Calculate the payback period for the investment.

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Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable—to itself, its stakeholders, and the public. By practicing CSR, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

Legal Requirements

The obligations or standards that are legally enforced, which an individual or organization must follow to comply with the law.

Environmental Law

The body of laws and regulations that are designed to protect the environment and regulate human activities that may harm it.

Cynicism

An attitude characterized by skepticism, negativity, and a general distrust of the motives of others.