A course of treatment costs $35,000 in one-time costs (today) to deliver and yields $7,000 in benefits over a five-year period (i.e. after one year, the benefit is $7,000, and at the end of each of the next four years, another $7,000 in benefits is realized). If the appropriate discount rate is 4.75%, is this course of treatment worth it? (Hint: think net present value)

Answer rating: 100% (QA)

To determine whether the course of treatment is worth it we can calculate the net present value NPV ... View the full answer