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Given this information, answer the following questions.
Cost Effectiveness
Current Treatment $100,000 4 life-years gained
New Treatment $250,000 10 life-years gained
A. Calculate the ICER for the new treatment, assuming that the new treatment would replace the old one.
B. In what quadrant is the ICER located in Figure 3-4? Is cost effectiveness analysis relevant?
C. How does the answer change if the cost of the new treatment equals $75,000?
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