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.
What will be an ideal response?
P = (110,000* 0.3)(P/A,12%,4)
= (33,000)(3.0373)
= $100,231
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