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Q 3 . The Scott and White Health Plan ( SWHP ) has purchased a robotized prescription fulfilment stem for faster and more accurate dellivery

Q3.
The Scott and White Health Plan (SWHP) has purchased a robotized prescription fulfilment
stem for faster and more accurate dellivery to patients with stable, pill-form medication for
chronic health problems, such as diabetes, thyroid, and high blood pressure. Assume this high-
tolume system costs $3 grittion to install and an estimated $200,000 per year for all materlals,
operating, personnel, and maintenance costs. The expected life is 10 years. An SWHP blo-
inedical engineer wants to estimate the total revenue requirement for each 6-month period that
is necessary to recover the investment. interest, and annual costs. Find this semlannual A value
If capital funds are evaluated at 8% per year, using 8% per year, compounded semianrual/y.
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