Question

The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care van to...

The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care
van to use in screning residens in an underserved local neighborhood. The van will
last for 5 years and costs $68,000. WCHC will pay for the acquisition and maintenance
of the van partially from foundation grants and partially from recipts from the county
health department. The county agreed to reimburse WCHC $15 fro each patient it
screens using the new van. They expect to have 800 patients peer year with the van. It
will cost $3,000 per year to maintain the vehicle, and includes all relevant costs.
WCHC uses a discount rate of 5 percent. How much will WCHC need in foundation
grants this year to make the purchase break-even financially? (Hint: what is the net
present value of the costs of buying and operating the van over its lifetime, less the
payments received from the county? Ar the payments from the county
sufficient? If not, how much must be raised in grants before the van is purchased?)
The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care
van to use in screning residens in an underserved local neighborhood. The van will
last for 5 years and costs $68,000. WCHC will pay for the acquisition and maintenance
of the van partially from foundation grants and partially from recipts from the county
health department. The county agreed to reimburse WCHC $15 fro each patient it
screens using the new van. They expect to have 800 patients peer year with the van. It
will cost $3,000 per year to maintain the vehicle, and includes all relevant costs.
WCHC uses a discount rate of 5 percent. How much will WCHC need in foundation
grants this year to make the purchase break-even financially? (Hint: what is the net
present value of the costs of buying and operating the van over its lifetime, less the
payments received from the county? Ar the payments from the county
sufficient? If not, how much must be raised in grants before the van is purchased?)
The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care
van to use in screning residens in an underserved local neighborhood. The van will
last for 5 years and costs $68,000. WCHC will pay for the acquisition and maintenance
of the van partially from foundation grants and partially from recipts from the county
health department. The county agreed to reimburse WCHC $15 fro each patient it
screens using the new van. They expect to have 800 patients peer year with the van. It
will cost $3,000 per year to maintain the vehicle, and includes all relevant costs.
WCHC uses a discount rate of 5 percent. How much will WCHC need in foundation
grants this year to make the purchase break-even financially? (Hint: what is the net
present value of the costs of buying and operating the van over its lifetime, less the
payments received from the county? Ar the payments from the county
sufficient? If not, how much must be raised in grants before the van is purchased?)
The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care
van to use in screning residens in an underserved local neighborhood. The van will
last for 5 years and costs $68,000. WCHC will pay for the acquisition and maintenance
of the van partially from foundation grants and partially from recipts from the county
health department. The county agreed to reimburse WCHC $15 fro each patient it
screens using the new van. They expect to have 800 patients peer year with the van. It
will cost $3,000 per year to maintain the vehicle, and includes all relevant costs.
WCHC uses a discount rate of 5 percent. How much will WCHC need in foundation
grants this year to make the purchase break-even financially? (Hint: what is the net
present value of the costs of buying and operating the van over its lifetime, less the
payments received from the county? Ar the payments from the county

sufficient? If not, how much must be raised in grants before the van is purchased?)

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