Two different liquid filter systems are being studied to clarify a liquid stream. A traditional filter will operate for one 8-hour shift before being replaced. A special pleated design can last one full week, operating 24 hours a day (3 shifts), 5 days per week. Labor cost to change a filter is estimated to be worth $10.00 for each filter change because a mechanic would work overtime to change the filter. The traditional filters cost $3.50; the special pleated filters cost $90.00. Which filter should be chosen?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Two different liquid filter systems are being studied to clarify a liquid stream. A traditional
filter will operate for one 8-hour shift before being replaced. A special pleated design can last
one full week, operating 24 hours a day (3 shifts), 5 days per week. Labor cost to change a
filter is estimated to be worth $10.00 for each filter change because a mechanic would work
overtime to change the filter. The traditional filters cost $3.50; the special pleated filters cost
$90.00. Which filter should be chosen?

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