Bennington Health purchased three dialysis systems each at an installed cost of $100,000 for different locations in the city. The AOC over 2 years varied as shown. (All values are costs.) The load factor in terms of percentage of clients at each location is shown in decimal form. Find the expected AW of costs for each location at /= 15% per year. Location Load Year 0 1 2 North (N) 0.50 100,000 20,000 11,000 South (S) 0.35 AOC, $ per year 100,000 15,000 12,000 West (W) 0.15 100,000 12,000 8,000 The expected AW of costs for each location is $46255(North),30979(South),12226(West)

EBK HEALTH ECONOMICS AND POLICY
7th Edition
ISBN:9781337668279
Author:Henderson
Publisher:Henderson
Chapter4: Economic Evaluation In Health Care
Section: Chapter Questions
Problem 7QAP
icon
Related questions
Question

Pls send me answer of this question immidiately i will rate you

Bennington Health purchased three dialysis systems each at an installed cost of $100,000 for different locations in the city. The AOC
over 2 years varied as shown. (All values are costs.) The load factor in terms of percentage of clients at each location is shown in
decimal form. Find the expected AW of costs for each location at i= 15% per year.
Location
Load
Year
0
1
2
North (N)
0.50
100,000
20,000
11.000
South (S)
0.35
AOC. $ per year
100,000
15.000
12,000
West (W)
0.15
100,000
12,000
8,000
The expected AW of costs for each location is $ 46255(North),30979(South),12226(West)
Transcribed Image Text:Bennington Health purchased three dialysis systems each at an installed cost of $100,000 for different locations in the city. The AOC over 2 years varied as shown. (All values are costs.) The load factor in terms of percentage of clients at each location is shown in decimal form. Find the expected AW of costs for each location at i= 15% per year. Location Load Year 0 1 2 North (N) 0.50 100,000 20,000 11.000 South (S) 0.35 AOC. $ per year 100,000 15.000 12,000 West (W) 0.15 100,000 12,000 8,000 The expected AW of costs for each location is $ 46255(North),30979(South),12226(West)
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Annual Cost
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK HEALTH ECONOMICS AND POLICY
EBK HEALTH ECONOMICS AND POLICY
Economics
ISBN:
9781337668279
Author:
Henderson
Publisher:
YUZU
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning