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The cost of the equipment is significant and therefore the issue should be investigated thoroughly by the CFO. The best way to handle this issue would be to consult the staff who would be taking care of the patients and operating the equipment, as well as outside sources, and have them estimate what machines are necessary and what they would cost, in other words create a bottom-up budget. The staff is a highly experienced staff and likely would have had experience with these machines or very similar ones before therefore due to the learning curves this would provide a more accurate budget. In doing this the CFO can truly determine how necessary Dr. Link’s recommended machines are. If still sceptical, the CFO can calculate tracking signals in order to determine whether or not there is a bias in the estimate. All of the above are good methods for the CFO to use in attempt to develop a true unbiased, objective budget for the machines.

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