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Procedure passes the cost benefit test

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Suppose a medical procedure involves high one-time costs (such as a surgical procedure) and benefits that extend, on average, over the following 20 years.

Suppose further that researchers have determined that the procedure passes the cost benefit test using both a 3% discount rate and a 6% discount rate.

Which discount rate provides the more confident result that the benefits outweigh the costs and why?

Reference no: EM131675161

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