Calculate the icer for the new treatment assuming that the, Business Economics

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Calculate the icer for the new treatment assuming that the

Given this information, answer the following questions.

Cost Effectiveness

Current Treatment $100,000 4 life-years gained

New Treatment $250,000 10 life-years gained

A. Calculate the ICER for the new treatment, assuming that the new treatment would replace the old one.

B. In what quadrant is the ICER located in Figure 3-4? Is cost effectiveness analysis relevant?

C. How does the answer change if the cost of the new treatment equals $75,000?

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