Health Economics, homework help

Health Economics, homework help

A new project being considered by a hospital has costs of initial start-up costs of $50 million and is expected to accrue benefits (additional revenue) of $14 million per year in Years 3, 4, 5 and 6. At a 10% discount rate, should the hospital invest in the project? (“Year 1” means one year from today, “Year 2” means two years from today, and so on. “Start-up” here means “Year 0” – that is, today.)

Directions:

Any words you write must be entirely your own. You cannot quote directly from any source. Moreover, you cannot simply paraphrase passages from the textbook or other written material distributed by the

There are two analytic critique and essay questions. If you are asked to appraise a statement, then you must begin your answer with an explicit assertion about whether the statement is True of False. The rest of your answer should explain why you assert that the statement you are appraising is true or false. Use appropriate graphs to enhance your appraisals and essay questions, making sure to clearly label everything. If specific graphs are mentioned in the question then their use is required; but other graphs that are not mentioned may also be relevant, in which case you must decide what graphs, if any, are appropriate to include in your answers. Verbal explanations must be focused and succinct – points will be deducted for answers that are unfocused or unnecessarily long. The Analytic Critique and Essay part is worth 70% of the of the exam grade. Answers must be typewritten, except for graphs. All graphs must be entitled Fig. 1, Fig. 2, etc., and as you write you should refer to these graphs by their titles. You may either attach all graphs at the end, or embed them within each of your answers – whatever works best for you. Draw BIG graphs to improve clarity.