Situation: The OR manager is looking to increase the OR capacity (by one OR) for the Thoracic service. The Thoracic service performs limited simple and similar cases. The service is currently fully booked at 12 hours per day, 5 days per week. The OR is used for other services the other available time.this time cannot be used by Thoracic. There are no other ORs available either. Important Data: Procedure time: 20 minutes Non-op time: 30 minutes (case wrap-up, room turn & set-up, patient prep in OR) Cost to run an OR room: $20/minute (you are charged for the time you use) Revenue per case: $1800 Estimated Total Demand: 24 cases/day Cost to build a new OR: $500K Hospital Capital Expenditure requirement: Payback period < 120 days Assignment: Determine whether or not the OR managers request for an additional OR should be approved. Explain your answer.