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Now I Can See!

Now I Can See!. The economic feasibility of Glasses vs Contacts Presented and Researched by: Team 5 Andrea Ferris and Forrest Hippensteel. The Scenario. A 18 year old, college b ound s tudent needs corrective lenses Assumptions Had glasses before Initial exam is complete

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Now I Can See!

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  1. Now I Can See! The economic feasibility of Glasses vs Contacts Presented and Researched by: Team 5 Andrea Ferris and Forrest Hippensteel

  2. The Scenario A 18 year old, college bound student needs corrective lenses Assumptions • Had glasses before • Initial exam is complete • Neglecting impact of insurance • MARR = 5% • Consistent Prescription Goal • What is the most cost effective option for the next 4 years of college

  3. Option 1: Glasses Type: Lenscrafters Costs: Frames and Lenses Present Value: 2 year =$428.63, 1 year = $836.40

  4. Option 2: 2-Week Contacts Type: Acuvue Oasys, 6 pack Costs: additional exam, contacts, cleaning solution, eye drops Present Value = $1100.97

  5. Option 3: Daily Disposable Contacts Type: 1-Day Acuvue Moist, 90 Pack Costs: additional exam, contacts, eye drops Present Value = $1755.02

  6. Initial Conclusions Using Present Value Analysis: • Glasses are the Cheapest • 2 year lifetime = $428.63 • 1 year lifetime = $836.40 • Disposable Contacts = $1100.97 • Daily Contacts = $1755.02

  7. Sensitivity Analysis: Frame Cost

  8. Sensitivity Analysis: Contact Cost

  9. Sensitivity Analysis: MARR

  10. Final Conclusions • 2 Year lifetime Glasses are the Cheapest • Disposable Contacts are Cheaper than Daily Contacts • Disposable Contacts are best if: • 1 Year frames cost > $175 OR • Contact cost < $18/box • Reasonable MARR and Solution Cost changes don’t affect decision

  11. Resources • Lenscrafters website: www.lenscrafters.com • MARR Research: http://en.wikipedia.org/wiki/Minimum_acceptable_rate_of_return • User interviews and personal experience

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