Suppose that the Happy-n-Healthy primary care practice

Suppose that the Happy-n-Healthy primary care practice is considering whether to pay for one of its nurse practitioners, Wendy, to obtain a special certification that will permit her to prescribe buprenorphine – an opiate addiction treatment medication. To gain this certification, Wendy will have to attend a training program that costs $5,000 in fees, and she will not be able to see any clinic patients for three days while she attends training. As a result of the training, Wendy could generate an additional $2,500 in practice revenue per year during each of the first two years after completing training. a. (6 pts) If both the direct and indirect training costs are considered, will the up-front investment cost of Wendy’s training be recovered within the first two years after training? Explain why or why not. b. (6 pts) Suppose the practice applies a 10% discount rate when calculating the present value of future practice revenue. Provide a mathematical expression for calculating the present value of Wendy’s added practice revenue over the first two years she is certified to prescribe buprenorphine. [NOTE: You do not need to calculate the present value answer. You only need to provide an expression for the calculation.]

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