Panhandle Medical Practice What value for travel and set-up costs would make the costs of the two alternatives the same.

Alternative 1: Activity cost 206760/year

Alternative 1: 3 ultrasound machines for $75,000 ea Maintenance cost is 1500/year

Alternative 2: total cost is 221160/year

Alternative 2: 1 machine $75,000, Van 40,000 Maintenance van $1000/year, machine is $1,000/year.

If a 5 percent discount was involved for the 3 ultrasound machines what impact does this have on the decision? What discount amount would make the two alternatives equal in costs.

What subjective factors would influence the decision as to which alternative to choose.