Calculate the reagent cost for each instrument/payment option for a five year period (standard time period when evaluating costs) by multiplying the reagent cost per test by the number of tests performed each year:

 

Your institution is considering the purchase of a new cell counter for hematology. You have evaluated many models from several manufacturers and have narrowed your choice down to two. Both companies offer reagent rental agreements as one purchasing option. Based on the following information, which instrument and which option is the most economical? Purchase Price Service Agreement (annual cost, to be maintained for 4 years) Reagent Cost (per test) Instrument 1 Purchase $87,750 $15,150 $0.85 Lease $0 $0 $1.10 Instrument 2 Purchase $78,000 $16,310 $0.90 The reagent pricing is based on a daily test volume of 265 samples per day Lease $0 $0 $1.14