Justifying the need for the capital acquisition The relationship between lounge renovation and organization’s goals and mission NURS FPX 6216 – Assessment 4 Preparing and Managing a Capital Budget Assumptions, knowledge gap, and areas of uncertainty 

    The renovation is based on three assumptions. The first assumption is renovation will not increase health care cost significantly. The second assumption is it will benefit both patients and nurses. The third assumption will not affect the normal operations of health care (Nejati et al., 2018). 

Justifying the need for the capital acquisition

The relationship between lounge renovation and organization’s goals and mission

There are six reasons to justify the need for capital acquisition. The first reason is varying and fixed costs of renovation can affect the timely lounge renovation process (Dal Mas et al., 2020). The second reason is failing to acquire capital results in increased turnover rate, lower nurse satisfaction, and increased burnout leading to errors. This will further increase errors leading to increased health care cost (Hardeman & Kahn, 2020). The third reason is capital acquisition helps in better design and renovation, which is critical in the successful allocation of budget to different aspects (Dal Mas et al., 2020). The fourth reason is related to analyzing the benefits of the lounge on an organization’s mission and values to achieve a better outcome. The fifth reason is capital acquisition reduces the burden on health care finances (Hardeman & Kahn, 2020). The sixth reason is capital acquisition highlights the need for improvement and provides cost-benefit analysis for decision-making and innovation (Huang et al., 2020).