Describe the benefits of this capital project to the overall HIM and healthcare organization and after completing the Pro Forma Income Statement below justify if the HIM department should lease or purchase the capital expenditure.

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A B C D E Medical Imaging - CT Scan Purchase FY2023 $ 980,000 Project Average Net Income $ 1,200,000 $ 1,250,000 Average Investment Amount $ 1,500,000 78.4% Average Rate of Return 80.0% 1 HIM Computer Assisted Coding Project - FY23 2 Project Average Net Income 3 Average Investment Amount 4 Average Rate of Return 5 6 7 Pro forma Income Statement 8 Buy Lease 9 Revenue (if any) $ 600,000 $ 600,000 10 Variable (costs) $ 3,000 $ 3,000 11 Gross Profit (Revenue -variable costs) $ 597,000 $ 597,000 12 Fixed cost (staff +lease payment) $ 250,000 $ 266,000 13 Depreciation ($0 under lease) 14 Earnings (EBIT earnings before interest & taxes) 15 Taxes (not-for-profit entity = 0% tax rate) 16 Net Income $ 4,000 $ $ 343,000 $ 331,000 $ $ $ 343,000 $ 331,000 A B C D E Medical Imaging - CT Scan Purchase FY2023 $ 980,000 Project Average Net Income $ 1,200,000 $ 1,250,000 Average Investment Amount $ 1,500,000 78.4% Average Rate of Return 80.0% 1 HIM Computer Assisted Coding Project - FY23 2 Project Average Net Income 3 Average Investment Amount 4 Average Rate of Return 5 6 7 Pro forma Income Statement 8 Buy Lease 9 Revenue (if any) $ 600,000 $ 600,000 10 Variable (costs) $ 3,000 $ 3,000 11 Gross Profit (Revenue -variable costs) $ 597,000 $ 597,000 12 Fixed cost (staff +lease payment) $ 250,000 $ 266,000 13 Depreciation ($0 under lease) 14 Earnings (EBIT earnings before interest & taxes) 15 Taxes (not-for-profit entity = 0% tax rate) 16 Net Income $ 4,000 $ $ 343,000 $ 331,000 $ $ $ 343,000 $ 331,000