Wakeland is considering purchasing a ROSA brain robotic platform for use in complex neurosurgical procedures and primarily as a surgical option for children with epilepsy. The quote for the ROSA brain is $700,000. Fixed costs (salary for an additional surgical tech trained in robotics, maintenance contract, etc.) were calculated to be $100,000 a year. Variable costs (supplies, disposable instruments, etc.)were estimated to be $1500 per patient. In 2022 Wakeland treated 100 children with seizure disorders. The neurosurgeons estimate that 25 of those children would be candidates for robotic surgery with ROSA brain. At $1500 per patient for 25 patients, variable costs are estimated to be $37,500. Reimbursement is per case is predicted to be $31,000. With a predicted 24 patients with payment of $31,000, the annual cash flow is predicted to be $744,000 With a price of $700,000, fixed costs of $100,000, and variable costs of $37,500, the initial investment = 837,500 What is the payback in years? 

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To calculate the payback period you need to determine how long it takes f... View the full answer