Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

Exercise 9

Syringe pumps often 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 downtime by 30% as a result of the new seal design. If lost production would have cost the company $110,000 per year for the next 4 years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 12% per year