Solution for QID #77713: Assume that you are the Medical Director of Hospital X and y | StudyHelpMe

Assume that you are the Medical Director of Hospital X and you would like to expand your radiotherapy (RT) services to accommodate more cancer patients. To do this, you will need to procure the following: 1. 1 linear accelerator (LINAC), the machine used to administer RT ($4 million) 2. 1 CT-scan machine needed for treatment planning prior to RT ($2 million) 3. 2 units of air conditioner to cool the machines ($5,000 each) 4. 1 unit of the software needed to run both LINAC and CT-Scan ($25,000) The useful life of the LINAC and CT-Scan machines is 10 years.The scrap value of LINAC is $250,000 while the CT-scan has no scrap value ($0), however there is a disposal fee of $2,000. All existing staff involved will need to undergo annual skills and safety training with the manufacturer for $5,000. There is also a required annual preventive maintenance fee of $20,000. The discount rate for costs and outcomes that the hospital uses is 3%. Based on the given information, estimate the annual cost of running the linear accelerator (LINAC) as part of the radiotherapy department of Hospital X.