What type of analysis would typically be used to justify a new equipment purchase?

A cost-benefit analysis is typically used to justify the purchase of new equipment because it provides a comprehensive evaluation of the financial impact of the investment. This type of analysis helps decision-makers assess the expected costs associated with the acquisition and operation of the equipment against the anticipated benefits, such as increased revenue, improved operational efficiency, enhanced patient care, or the potential to reduce other costs over time.

By systematically quantifying these factors, a cost-benefit analysis enables administrators to make informed decisions based on the potential return on investment. This approach is particularly important in healthcare settings, where high-value capital investments are made, and demonstrating the financial prudence of such a decision is crucial for securing approvals from stakeholders or governing bodies.

While the other types of analyses mentioned—market analysis, SWOT analysis, and feasibility studies—provide valuable insights in different contexts, they do not focus specifically on the financial justification required for equipment purchases. For instance, a market analysis assesses the demand and competition for services, a SWOT analysis identifies strengths, weaknesses, opportunities, and threats within the organization, and a feasibility study evaluates the practicality and logistics of initiating a project or investment.