Now I Can See!The ScenarioOption 1: GlassesOption 2: 2-Week ContactsOption 3: Daily Disposable ContactsInitial ConclusionsSensitivity Analysis: Frame CostSensitivity Analysis: Contact CostSensitivity Analysis: MARRFinal ConclusionsResourcesThe economic feasibility of Glasses vs ContactsPresented and Researched by:Team 5 Andrea Ferris and Forrest HippensteelThe ScenarioA 18 year old, college bound student needs corrective lensesAssumptionsHad glasses beforeInitial exam is completeNeglecting impact of insuranceMARR = 5%Consistent PrescriptionGoalWhat is the most cost effective option for the next 4 years of collegeOption 1: GlassesType: LenscraftersCosts: Frames and LensesPresent Value: 2 year =$428.63, 1 year = $836.40Option 2: 2-Week ContactsType: Acuvue Oasys, 6 packCosts: additional exam, contacts, cleaning solution, eye dropsPresent Value = $1100.97Option 3: Daily Disposable ContactsType: 1-Day Acuvue Moist, 90 PackCosts: additional exam, contacts, eye drops Present Value = $1755.02Initial ConclusionsUsing Present Value Analysis:Glasses are the Cheapest 2 year lifetime = $428.631 year lifetime = $836.40Disposable Contacts = $1100.97Daily Contacts = $1755.02Sensitivity Analysis: Frame CostSensitivity Analysis: Contact CostSensitivity Analysis: MARRFinal Conclusions2 Year lifetime Glasses are the CheapestDisposable Contacts are Cheaper than Daily ContactsDisposable Contacts are best if:1 Year frames cost > $175 ORContact cost < $18/boxReasonable MARR and Solution Cost changes don’t affect decisionResourcesLenscrafters website: www.lenscrafters.comMARR Research: http://en.wikipedia.org/wiki/Minimum_acceptable_rate_of_returnUser interviews and personal
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