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A county medical agency is considering two mutually exclusive options for treatment of a chronic illness in a population of elderly patients. For each option

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A county medical agency is considering two mutually exclusive options for treatment of a chronic illness in a population of elderly patients. For each option the agency has initial outlays (for equipment and initial training) and annual expenses. Patient benefits are measured in terms of quality of life, and patient costs are measured in terms of lost income due to treatment. Estimates have been made of the dollar value of both. Each option has a lifetime of 5 years, after which new options will be considered based on the technology available then. MARR is 5%. B A $120.000 35.000 Investment (t = 0) Annual expense Annual patient benefits Annual patient costs $165.000 55,000 200,000 18,000 175.000 12,000 What is the incremental BC when the two are compared? Select the answer closest to this value. 0.63 0 0.69 0.75 O 0.96

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