1. New Robotic Procedure (annuitisation focus) You have been asked to evaluate a new Robotic procedure for stroke rehabilitation which North- South Hospital is thinking of routinely providing. The Hospital first want to run a RCT to see if the cost is "worth it". The up-front cost of the actual robot is $300,000. There is an annual maintenance contract of $20,000 per annum. At the end of 5 years the robot will need to be replaced but will have a re-sale value of $20,000. 1a. What is the net present value of the robot? (Include the maintenance costs) and use a 5% discount rate. Hint – Use Drummond's first method (page 95 & 96 for simplicity). - 1b. Now you need to work out the cost per procedure/person in order to undertake the economic evaluation. You have been provided with the following information: 1c. The site can provide 10 sessions per day per robot and 2 patients per session can be accommodated. What is the cost per session of the robot alone? What is the cost per session including the therapist cost of $120 per session?

1. New Robotic Procedure (annuitisation focus) You have been asked to evaluate a new Robotic procedure for stroke rehabilitation which North- South Hospital is thinking of routinely providing. The Hospital first want to run a RCT to see if the cost is "worth it". The up-front cost of the actual robot is $300,000. There is an annual maintenance contract of $20,000 per annum. At the end of 5 years the robot will need to be replaced but will have a re-sale value of $20,000. 1a. What is the net present value of the robot? (Include the maintenance costs) and use a 5% discount rate. Hint – Use Drummond's first method (page 95 & 96 for simplicity). - 1b. Now you need to work out the cost per procedure/person in order to undertake the economic evaluation. You have been provided with the following information: 1c. The site can provide 10 sessions per day per robot and 2 patients per session can be accommodated. What is the cost per session of the robot alone? What is the cost per session including the therapist cost of $120 per session?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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