Question

Exhibit 14.2 summarized the following: Intervention A results in total QALY 190 after year 1 and...

Exhibit 14.2 summarized the following:

Intervention A results in total QALY 190 after year 1 and 183.3 after year 2

Intervention B results in total QALY 201.6 after year 1 and 185.07 after year 2

End of year 1, QALYB-QALYA=11.60

End of year 2, QALYB-QALYA=1.77

Total difference in QALY after 2 years=13.37

Cost per QALY=$300,000/13.37=$22,438

If the discount rate is 6%, calculate the cost per QALY if there is a $300,000 difference in cost between A and B. Round to the nearest dollar.

Select one:

a. $22,201

c. $23,962

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Use Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an annuity of $1,...
Use Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash flow amount. Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,050,000 and will last 10 years. Evee Cardenas is interested in investing...
Net Present Value Versus Internal Rate of Return For discount factors use Exhibit 12B-1 and Exhibit...
Net Present Value Versus Internal Rate of Return For discount factors use Exhibit 12B-1 and Exhibit 12B-2. Skiba Company is thinking about two different modifications to its current manufacturing process. The after-tax cash flows associated with the two investments follow: Year Project I Project II 0 $(100,000) $(100,000) 1 —           63,857 2   134,560     63,857 Skiba's cost of capital is 12%. Required: 1. Compute the NPV and the IRR for each investment. Round present value calculations and your final NPV answers...
Net Present Value Use Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an...
Net Present Value Use Exhibit 12B.1 and Exhibit 12B.2 to locate the present value of an annuity of $1, which is the amount to be multiplied times the future annual cash flow amount. Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $1,850,000 and will last 10 years. Evee Cardenas is...
Net Present Value and Competing Projects For discount factors use Exhibit 12B.1 and Exhibit 12B.2. Spiro...
Net Present Value and Competing Projects For discount factors use Exhibit 12B.1 and Exhibit 12B.2. Spiro Hospital is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash inflows for the two competing projects are as follows: Year Puro Equipment Briggs Equipment 1 $320,000 $120,000 2   280,000   120,000 3   240,000   320,000 4   160,000   400,000 5   120,000   440,000 Both projects require an initial investment of $560,000....
NPV and IRR, Mutually Exclusive Projects For discount factors use Exhibit 12B-1 and Exhibit 12B-2. Hunt...
NPV and IRR, Mutually Exclusive Projects For discount factors use Exhibit 12B-1 and Exhibit 12B-2. Hunt Inc. intends to invest in one of two competing types of computer-aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of 10 years. The purchase price of the CAM X model is $3,600,000, and it has a net annual after-tax cash inflow of $900,000. The CAM Y model is more expensive, selling for $4,200,000,...
Required: 1. Calculate the present value for the following assuming that the money can be invested...
Required: 1. Calculate the present value for the following assuming that the money can be invested at 11% percent. (Round final answers to the nearest dollar amount.) Present Value a. You may receive $63,000 immediately. $    b. You may receive $86,000 at the end of five years. $    c. You may receive $20,000 at the end of each year for five years (a total of $100,000). $    Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate...
On July 1, Year 1, Danzer Industries Inc. issued $2,200,000 of 9-year, 10% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $2,200,000 of 9-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $2,076,302. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If an amount box does not require an...
After a computer failure, you are trying to reconstruct some financial results for the year just...
After a computer failure, you are trying to reconstruct some financial results for the year just ended. While you know that backups are available, it will take too long to get the information you want. You have been able to collect the following information: Direct materials inventory, January 1 (Beginning) $ 2,800 Direct materials inventory, December 31 (Ending) 2,350 Work-in-process inventory, January 1 (Beginning) 5,730 Work-in-process inventory, December 31 (Ending) 2,500 Finished goods inventory, December 31 (Ending) 3,460 Manufacturing overhead...
Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued...
Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued $6,900,000 of 7-year, 10% bonds at a market (effective) interest rate of 11%, receiving cash of $6,569,162. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If...
Problem 11-2 (LO11.1) Using Exhibit 1-B, complete the following table. (Round FV factors to 3 decimal...
Problem 11-2 (LO11.1) Using Exhibit 1-B, complete the following table. (Round FV factors to 3 decimal places and final answers to the nearest whole dollar amount.)    Annual Deposit Rate of Return Number of Years Investment Value at the End of Time Period Total Amount of Investment Total Amount of Earnings $3,800       5%        20         $     $        $     $3,800       7%        20         $     $          $     $3,800       7%        30...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT