Proximity sensor attached to the tip of an endoscope

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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 $0.95 million and $1.37 million 3 and 6 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 11% per year.

Reference no: EM13732431

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