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Find how much will wchc need in foundation grants

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Problem 1: The Ward County Hospital Center (WCHC) wants to buy a new mobile primary care van to use in screening residents in an underserved local neighborhood. The van will last 5 years and costs $68,000. WCHC will pay for the acquisition and maintenance of the van partially from foundation grants and partially from receipts from the county health department. The county has agreed to reimburse WCHC $15 for each patient it screens using the new van. They expects to have 800 patient per year with the van. It will cost $3,000 per year to maintain the vehicle, which includes relevant costs. WCHC uses a discount rate of 5%. How much will WCHC need in foundation grants this year to make the purchase break-even financially?

Reference no: EM132676693

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