2-23 You are reevaluating the pump choice that was made last year by your boss. The expected...

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2-23 You are reevaluating the pump choice that was made last year by your boss. The expected cost savings have not occurred because the pump is too small. Choice A. at $90,000, is to replace the pump with one that is the right size and sell the old one. Choice B, at $100,000. is to buy a small pump to use in tat- dem with the existing pump. The two-pump solution has slightly higher maintenance costs, but it is more flexible and reliable. What criteria should you use? Which choice would you recommend, and why?

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Engineering Economic Analysis

ISBN: 9780357419687

11th Edition

Authors: Donald Newnan, Ted Eschenbach, Jerome Lavelle

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