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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 five years and costs sixty-eight thousand dollars. 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 fifteen dollars for each patient it screens using the new van. They expect to have eight hundred patients per year with the van. It will cost three thousand dollars per year to maintain the vehicle, which includes all relevant costs. WCHC uses a discount of five percent.
Question 1: How much will WCHC need in foundation grants this year to make the purchase break-even financially?
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