Please answer the following question:

Question 1: Estimate the base case cost of each alternative regarding the provision of ultrasound services. (For now, ignore the discount if three units are purchased.)

Question 2: Which alternative has the lower total cost?

Question 3: What value for travel and setup costs would make the costs of the two alternatives the same?

Question 4: Now consider the 5 percent discount. What impact does this discount have on the decision? What discount amount would make the two alternatives equal in costs?

Question 5: What subjective factors would influence the decision as to which alternative to choose?

Question 6: What is your final decision?

Note: Please answer in proper manner and show all computations