Inflation, risk, replacement, closure: concerns in capital budgeting.

Four problems can affect the capital budgeting process-inflation, replacement, risk, and closure. Therefore financial managers must consider these problems carefully when making capital budgeting decisions. This article is the second of a two-part series on capital budgeting in health care. It builds on the existing level of knowledge of capital budgeting to give the financial manager confidence in the use of capital budgeting techniques.