Syringe pumps oftentimes fail because reagents adhere to the ceramic piston and deteriorate the seal. Trident Chemical developed an integrated polymer dynamic seal that provides a higher sealing force on the sealing lip, resulting in extended seal life. One of Trident’s customers expects to reduce down time by 30% as a result of the new seal design. If lost production would have cost the company $110,000 per year for each of the next 4 years, how much could the company afford to spend now on the new seals? Use a MARR of 12% per year

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Syringe pumps oftentimes fail because reagents adhere
to the ceramic piston and deteriorate the seal.
Trident Chemical developed an integrated polymer
dynamic seal that provides a higher sealing force
on the sealing lip, resulting in extended seal life.
One of Trident’s customers expects to reduce down
time by 30% as a result of the new seal design. If
lost production would have cost the company
$110,000 per year for each of the next 4 years, how
much could the company afford to spend now on
the new seals? Use a MARR of 12% per year

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