proscan developed a new kind of

ProScan developed a prototype for a new kind of medical scanner. Assume that there is only one possible customer, MedCare. Right now, MedCare spends 2.8M per year on scanning (renting 4 traditional scanners for 0.5M each, and 0.8M on technical and maintenance costs). If MedCare was to buy ProScan machine, they could substitute the 4 scanners for only one, and the technical and maintenance costs would go down to only 0.5M per year). Assume that MedCare's CFO uses a 5% discount rate for future savings. In order to provide the scanner, ProScan would have to pay a minimum of 10M for labor and 15M for materials to attract them to the company. What is the total value created by ProScan and MedCare? What is the added value by ProScan? What is the added value by MedCare? What do the results mean for the profitability of ProScan and MedCare? Hint for the solution: Calculate WTP MedCare will be indifferent between (a) spending 46M and spending 0.5M each year in maintenance, or (b) spending 2.8M each year in rental and maintenance Calculate Soc What is the minimum price at which ProScan will produce? Then apply the definitions of Value Creation and Value Added by a player