Tip of an endoscope could reduce risks

Assignment Help Business Economics

Reference no: EM13815489

A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting the surgeon to the location of critical retinal tissue. A certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0.95 million and $1.37 million 3 and 6 years from now, respectively. How much could he afford to spend now if out-of-pocket costs for the lawsuits would be 9% of the total amount of each suit? Use an interest rate of 11% per year.

Reference no: EM13815489

Questions Cloud

The cost of common equity : A new common stock issue that paid a dividend of $1.76 million last year. The firm's divendends are expected to grow at 6.1 percent, per year, forever. The price of the stock is currently $27.58. The cost of common equity

Corporate bond with a face value : Tara bought a corporate bond with a face value of $20,000 at a discounted price of $18,000. The bond pays a dividend every year payable quarterly. What is the quarterly dividend Tara should get if she hopes to get a 12% return on her investments? Ass..

High technology manufacturing activity : Why do you think China is now a favor location for so much high technology manufacturing activity? How will China increasing involvement in global trade help that country? How it will help the world develop economies? What potential problems are asso..

Hypothetical prices-quantities demanded of software product : The table below shows the hypothetical prices and quantities demanded of a software product. Assume that the fixed cost of setting up the production of software is $200 and the marginal cost is $5.

Tip of an endoscope could reduce risks : A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting the surgeon to the location of critical retinal tissue. A certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0..

Using the midpoint formula for the elasticity of demand : Suppose you had an initial price of 32. Using the midpoint formula for the elasticity of demand, you determine that demand is unit elastic. What was the new price?

What would you charge private pay patients : Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. If the union negotiated a fee of $45 instead, what would you charge private pay pa..

Developing a new drug-what price do you charge the public : Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill costs $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1. What price do you charge th..

What is the clinics profit-maximizing price : A clinic has incremental costs per case of $10 and overhead costs of $100,000. It faces a price elasticity of demand of -2. What is the clinic’s profit-maximizing price? (Round to the nearest whole dollar)

User Account

All Pages