CAPITAL EQUIPMENT BUSINESS CASE · CONFIDENTIAL
Capital equipment business case: is a new imaging system worth $166,800?
This capital equipment business case demonstrates how a new imaging-system purchase can be tested against demand, financing, operating savings, return on investment and payback before capital is committed.
All company and equipment names are disguised in the source document. Figures and assumptions are based on real operational and financial data for the 2023 Phase I period and are presented for illustrative purposes.
EXECUTIVE SUMMARY
Capital equipment business case: the investment is attractive if the assumptions hold.
The source business case concludes that the purchase can support higher throughput, lower third-party costs, operational savings and additional revenue. It recommends proceeding subject to demand, financing and operating assumptions being validated.
DEMAND & UTILISATION
Capacity needs to meet a real operating constraint.
The source case models the new system against current workload, existing outsourcing and expected growth.
Current demand
Existing throughput is around 50–60 exams per day, with growth estimated at 18.1% over the prior year.
Operational impact
Adding capacity reduces reliance on third-party outsourcing and shortens waiting times in the source model.
Risk case
If demand is materially lower than expected or if the equipment is underutilised, the payback period extends.
FINANCIAL CASE
Savings improve the investment case before growth revenue is counted.
MetricSource-case valueWhy it matters
Monthly internal savingEGP 8,235
Lower outsourcing and operational costs in the base case.
Operating-cost saving7.7%
Illustrates efficiency improvement associated with the investment.
Revenue potential~EGP 120,000/month
Incremental revenue assumption in the source model.
Return on investment~9.7%
Base-case ROI reported in the source document.
Payback period~10 years
Base-case payback, sensitive to demand and operating performance.
SCENARIO SENSITIVITY
The recommendation changes with utilisation and growth.
The source case compares a low, base and high scenario. Lower growth and utilisation extend payback materially, while higher demand improves return and shortens the payback period. The conclusion is therefore conditional on validating demand and managing execution risk.
- Validate growth assumptions with recent demand data.
- Confirm financing terms before commitment.
- Track actual utilisation and savings against the business case.
- Update the model if pricing, costs or demand change.
BEFORE THE CAPITAL COMMITMENT
Build the decision around demand, economics and execution.
Share the investment question and the assumptions your team needs to validate.