Proximity sensor attached to the tip of an endoscope

Assignment Help Financial Management

Reference no: EM13806661

A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting the surgeon to the location of critical retinal tissue. A certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0.5 million and $1.2 million 2 and 5 years from now, respectively. How much could he afford to spend now if out-of-pocket costs for the lawsuits would be 9% of the total amount of each suit? Use an interest rate of 7% per year

Reference no: EM13806661

Questions Cloud

Pro-forma incremental earnings and pro-forma free cash flow : Can you describe a situation when we use pro-forma incremental earnings and pro-forma free cash flow? I still can’t understand how they work in a real world.

Frequently borrow money under an arrangement : Companies frequently borrow money under an arrangement that requires them to make periodic payments of only interest and then pay the principal of the loan all at once. A company that manufactures odour control chemicals borrowed $400,000 for 3 years..

Should the company replace the furniture : A medium size consulting engineering firm is trying to decide whether it should replace its office furniture now or wait and do it 1 year from now. If the firm does it now, the cost will be $14,500. If it waits 1 year, the cost is expected to be $ 16..

Employees a salary enhancement package : A small internet company plans to offer its employees a salary enhancement package which has revenue sharing as its main component. Specifically, the company will set aside 1% of total sales for yearend bonuses for all of its employees. The sales are..

Proximity sensor attached to the tip of an endoscope : A proximity sensor attached to the tip of an endoscope could reduce risks during eye surgery by alerting the surgeon to the location of critical retinal tissue. A certain eye surgeon expects that by using this technology, he will avoid lawsuits of $0..

Short-term bond prices are more sensitive to interest rate : Short term interest rates are more volatile than long-term interest rates, so short-term bond prices are more sensitive to interest rate changes than are long-term bond prices. Is this statement true or false? Explain.

Wide variety of annuities-specific annuity : Investors can invest in a wide variety of annuities and can also use different annuity settlement options to meet specific retirement needs. For each of the following retirement objectives, identify either (1) a specific annuity or (2) an annuity set..

The amount available for distribution to all claimants : Duchon Industries had the following balance sheet at the time it defaulted on its interest payments and filed for liquidation under Chapter 7. Sale of the fixed assets, which were pledged as collateral to the mortgage bondholders, brought in $900 mil..

Retirement plan-what is rate of return on total invested : A publicly traded consulting engineering firm has a retirement plan wherein the company will match an employee’s stock purchases up to $ 5,000 per year, provided the employee has been with the firm for at least 10 years. If an employee hired 10 years..

User Account

All Pages