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Patient BN is a 36-year-old female with a type of organ failure that reduces her quality of life to half of what it would be

Patient BN is a 36-year-old female with a type of organ failure that reduces her quality of life to half of what it would be in good health. Without treatment, she can expect to live only two years. With a successful transplant, BN can expect to live four years and have a quality of life that is near 80% what she would enjoy in good health. However, the transplant costs $100,000, plus $10,000 each year for drugs and follow-up care, and carries a 15% risk of rejection resulting in immediate death.

a. Calculate the expected costs with and without the treatment. b. Calculate the expected years of life with and without the treatment. c. Calculate the expected years of life gained. d. What is the cost per additional year of life gained (without discounting for time or quality of life)?

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