The Board is exploring the option of creating a Quantitative Decision-Making Support Center in the Medical Center. However, they are not sure if the benefits of the investment in this new Center would justify the additional cost. The Board wants to buy new equipment of an out-patient radiology Center and secondly they want to expand their home-health physical therapy services.
Your assignment is to write a short report (one page ) to the Board explaining how specific quantitative tools can help the organization make better decisions. Select and discuss 2 specific tools from the following list. Tell the Board what the pros and cons are of using the tools to help support making a decision about the two initiative mentions above. Your choices are;
Net Present Value
Break-Even-Analysis
Decision Trees