B) Calculate the AEC (Average Equivalent Cost) of the hospital building using the cost requirements given in Table 3 > Table 3. Construction Cost OMR 1 million OMR 150,000 Annual Running Cost Repainting Costs @every 2 Years Repair Costs @ every 2 years OMR 30,000 OMR 25,000 Major replacement cost @ 5 years OMR 75,000 (Including the service costs) The demolition cost is estimated at OMR 200,000 (excluding the Salvaged material valued at OMR 60,000) at the end of 15th year. The interest rate (r) is 5% and the Annual Sinking Fund (ASF) is 1.5%. Note: The PV and SF tables is provided as attachment to this question paper.

B) Calculate the AEC (Average Equivalent Cost) of the hospital building using the cost requirements given in Table 3 > Table 3. Construction Cost OMR 1 million OMR 150,000 Annual Running Cost Repainting Costs @every 2 Years Repair Costs @ every 2 years OMR 30,000 OMR 25,000 Major replacement cost @ 5 years OMR 75,000 (Including the service costs) The demolition cost is estimated at OMR 200,000 (excluding the Salvaged material valued at OMR 60,000) at the end of 15th year. The interest rate (r) is 5% and the Annual Sinking Fund (ASF) is 1.5%. Note: The PV and SF tables is provided as attachment to this question paper.

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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