The communication of the recommendation to the board of directors is critical to provide the opportunity to explain the basis for the recommendation as well as the rationale as to why this recommendation represents the appropriate course of action for the board. This culminates the capital budget process and generates the decision-making that supports the recommendation.
Review your answers to problem 14.6. Write a brief memo to the board of directors for Big Sky Health Systems Inc. explaining the results of your calculations regarding the new service. Is the new service financially viable? What recommendations would you make to the board regarding this service? Would the recommendation be the same if there was an opportunity cost involved of $15,000 (total) in today’s dollars obtained by renting the space involved in the new service to an outside entity for 3 years? Why or why not?
Your memo should be no more than 250 words in length. You should reference appropriate supporting documentation, such as calculations from your other assignment, but you need not reproduce the calculations in their entirety.
All sources, including course materials, must be cited in text in APA style.