New experimental laser treatment for heart patients

Assignment Help Financial Management

Reference no: EM131066458

Researchers associated with South Miami Hospital (SMH) developed a new experimental laser treatment for heart patients. Its development team and the physicians who use the laser consider it to be a lifesaving advance. It should be noted that the physicians who are touting the laser hold a significant stake in the company that produces the laser. To offer a substitute for a balloon angioplasty to treat heart blockages, the experimental laser was developed at a cost of $250,000. SMH estimates that it will cost $20,000 to install the laser. The procedure requires a nurse at $50 per hour, a technician at $30 per hour, and a physician who is paid $750 per hour. Patients are billed $3,000 for the procedure compared to $1,500 for the traditional balloon treatment. Determine the break-even quantity for the new procedure. Is it ethical for the patient to pay for R&D costs prior to the introduction of the final product? Is it proper for physicians to recommend this procedure when they have a vested interest in its usage?

Reference no: EM131066458

Questions Cloud

How many values are in a hexadecimal : How many values are in a hexadecimal? Hello students. I hope you are all doing well. Today you will practice finding shading and triadic complementaries.

Outstanding long-term debt : In addition, you are told that the firm issued $62,500 in new equity during 2015, and redeemed $42,000 in outstanding long-term debt.

Forward rate agreement : Sumitomo Bank sells a “three against nine” USD15,000,000 Forward Rate Agreement (FRA) for a 6-month period beginning 3 months from today and ending 9 months from today. Assume that 3 months from today the actual rate is 4.35 percent. Determine how mu..

How do you evaluate the worker''s appraisal in this case : Do you suggest any techniques to avert politics creeping into the process of performance appraisal by subordinates? Or do you suggest the measure of dispensing with such appraisal systems?

New experimental laser treatment for heart patients : Researchers associated with South Miami Hospital (SMH) developed a new experimental laser treatment for heart patients. Its development team and the physicians who use the laser consider it to be a lifesaving advance. Is it ethical for the patient to..

How to study more effectively : PSY352: Cognitive Psychology - How to Study More Effectively: Putting Knowledge of Memory Functioning to Work - examine the ability to create durable and easily accessible memories, which is an essential aspect of effective study techniques.

Future value and effective annual rate : How does the compounding frequency affect the future value and effective annual rate for a given deposit? Explain in terms of your findings in parts a through c

Four australian smart beta exchange traded funds : The spreadsheet, Report 2.xlsx contains data on four Australian smart beta exchange traded funds (ETFs) from June 2011 to April 2016. Each of these ETFs is passive as they attempt to track their chosen benchmark index, but they also have an activ..

Standard deviation of monthly changes in the spot price : The standard deviation of monthly changes in the spot price of live cattle is (in cents per pound) 1.35. The standard deviation of monthly changes in the futures price of live cattle for the closest contract is 0.8. The producer wants to use the Dece..

User Account

All Pages