Reference no: EM132407248

Assuming monetary benefits of a robotic surgery system at $75,000 per year, one-time (development) costs of $95,000, recurring costs of $35,000 per year, a discount rate of 10 percent, and a 5-year time horizon, calculate the net present value of these costs and benefit of this robotic surgery system.

b. Also, calculate the overall benefit-cost ratio (BCR) of the project and then present a break-even analysis. At what point does break-even occur?

c. Now change the discount rate to 5 percent and redo the analysis.

d. Now change the recurring costs to $40,000 per year and redo the analysis, first for 10% and then for 5%.